Swiss international hotel chain Swissôtel Hotels & Resorts has signed management contracts for two more hotels in India, the Swissôtel Gurgaon and the Swissôtel Whitefield, Bangalore.
For both these projects, Swissôtel has partnered with different investee companies of The Xander Group Inc, the leading international private equity firm. This month, Swissôtel opened its first hotel in India in Kolkata.
The proposed hotel, Swissôtel Gurgaon, plans to open in 2013 and will offer 240 rooms and suites.
In one among major deals, Xander Real Estate Partners invested $110 million (Rs 515 crore) in the hospitality division of Pune-based Panchshil Realty Pvt. Ltd. this month.
In April 2007, Xander had joined hands with Tata Group to launch a $650-million global fund specializing in institutional real estate. Tata’s retail arm, Trent was to be the PE fund’s anchor tenant. In 2006, Xander Real Estate Partners had bought a 20% stake in a joint venture between Reliance Industries and the Maker Group, to develop commercial, residential and retail real estate in Bandra Kurla Complex in Mumbai.
India’s hospitality industry, which has a high growth potential, witnessed private equity investments worth above $350 million till date in 2010. Apart from the Xander deal, IL&FS India Realty Fund II, acquired approximately 30% stake in New Delhi based Aria Hotels and Consultancy Services Pvt. Ltd. for approximately $17.8 million (Rs 80 crore). Aria Hotels and Consultancy Services Pvt. Ltd. owns and operates 400+ room hotel Hyatt Regency in Mumbai. In May, Clearwater Capital Partners LLC invested $12.49 million (INR 560 million) in Pune-based Sayaji Hotels Ltd while Kohlberg Kravis Roberts, New Silk Route Partners and Standard Chartered Private Equity acquired 20% stake in Bangalore based Coffee Day Resorts & Hotels Ltd. for a price of $200 million (INR 9.21 billion). In January, JP Morgan India Property Fund acquired 49% stake in Bangalore based Viceroy Bangalore Hotels Pvt. Ltd. for a price of $16.73 million (INR 740 million).
According to the release, Swissôtel Gurgaon is being developed by a company co-promoted by The Xander Group Inc. and Kohli One, a leading National Capital Region based developer.
Swissôtel Whitefield, Bengaluru, proposed to be opened in 2013, will have 151 guest rooms and suites. The hotel is an integral part of a 559,000 sq ft mixed-use project that will include leading retail formats, a state of the art multiplex, restaurants, and entertainment and leisure facilities, stated the release. The project is being developed by Virtuous Retail Limited, a Xander investee company.
“These two exciting projects enable us to push ahead with our expansion in the promising and strategic Indian market,” says Meinhard Huck, President Swissôtel Hotels & Resorts. “We are delighted to have found a professional partner in The Xander Group Inc., who is entrusting us with the management of these two deluxe hotels and values our Swiss Hospitality and our high quality standards,” he added.
Swissôtel Hotels & Resorts is owned by Fairmont Raffles Hotels International, a leading global hotel company with 95 hotels and resorts worldwide under the Raffles, Fairmont and Swissôtel brands. The company also manages Fairmont and Raffles branded Residences, Estates and luxury private residence club properties.