IL&FS India Realty Fund II, one of the largest private equity real estate funds in India, is picking up a stake in Aria Hotels and Consultancy Services Private Limited (Aria Hotels) at a total project cost of Rs 700 crore. Aria Hotels is a subsidiary of Asian Hotels (West) Limited, which owns the 400+ room hotel Hyatt Regency in Mumbai.
Asian Hotels plans a major expansion drive with the development of a 500+ room hotel through its subsidiary. It has also entered into a 30-year management contract with Marriott International to develop the first J.W. Marriott hotel in Delhi with 500+ guest rooms, which will come up within the hospitality district of Delhi International Airport’s ‘Aerocity’. The entire loan of the JW Marriott Delhi project has been tied up with the consortium of public sector banks led by Union Bank of India.
“With the country facing a huge challenge of demand-supply disparity, while the economy is growing rapidly, we consider the hospitality sector to be on a growth path. The Asian Hotel (West) promoted Aria Hotels which is developing the J W Marriot hotel under the leadership of Mr Sushil Gupta is strategically located within the Delhi Hospitality District and is well positioned to capitalise on this growth opportunity” said Shahzaad Dalal, Vice Chairman, IL&FS Investment Managers.
Asian Hotels plans to continue developments in the five star deluxe hospitality market as well as in the mid-market segment. In the mid-market segment, it has plans to develop a Clarion Hotel in Pune with an inventory of 100 rooms.