Bangalore-based real estate developer Brigade Enterprises Ltd and international hotel chain InterContinental Group (IHG) have signed a deal to build 10 Holiday Inn Express hotels in South India.
“Hospitality is an important business segment for Brigade Group and we are working on strengthening our enterprise,” MR Jaishankar, chairman and managing director of Brigade Enterprises, said.
According to this agreement, these 10 hotels would be owned by Brigade Group and managed by IHG. Apart from this, Brigade group has six hotels in its portfolio in South India, either operational or under development. Holiday Inn Express brand from IHG stable comes under the category of 3 star hotels and aims at the midscale segment.
“The business model of the brand will provide Brigade Group with good returns on investment per hotel and we are delighted to have this opportunity to extend our relationship with the group and expand the brand’s presence in India,” said Douglas Martell, vice president operations South West Asia, IHG.
Under the agreement, the first two hotels will open in Bangalore in 2017 and the remaining eight hotels are scheduled to open before 2020. The two companies are already in partnership for Holiday Inn - Tidel Park in Chennai. This hotel is scheduled to open in 2015. Brigade Group plans to invest Rs 50-80 crore for building each hotel.
(Edited by Joby Puthuparampil Johnson)