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Dubia private equity firm Istithmar and Europe's easyGroup have joined hands to start a chain of budget (non-frills) hotels in India. They would offer only rooms with no food and beverage outlets. easyGroup is the owner of Europe's leading budget airline easyJet and hotel chain easyHotel. The JV will establish four easyHotel properties in Delhi, Mumbai, Chennai and Kolkata by 2008.

This will be followed by four more budget hotels in the following year, easyGroup founder Stelios Haji Ioannou said. The two have lined up an investment of around $100 million for India foray, said Istithmar CEO Muneef Tarmoom. Istithmar already owns an 11 per cent stake in low-cost carrier SpiceJet. [Via The Times Of India]

The Dubai investment firm also recently launched Istithmar Hotels FZE --a 100 per cent subsidiary formed by Istithmar for its investments in the hospitality and leisure sector. It has appointed Joe Sita as the CEO of Istithmar Hotels.