Mumbai: Construction firm Gammon India Ltd said on Thursday, 30 August, it has tied up with US-based Wyndham Hotel Group International for developing a budget hotel chain in India.
“It is a volume game. We plan to initially develop 35-40 hotels and expect these to be commissioned within 3 years,” Parvez Umrigar, group spokesperson, told Reuters.
“Gammon expects to invest Rs3-4 billion (Rs300-400 crore, $75-100 million) in these projects, including the land and construction cost,” he said.
Under the tie-up, the hotel chain will use two brand names from the Wyndham stable for their properties in India.
Wyndham operates 6,500 hotels as part of its worldwide chain, Gammon said in the statement.
Gammon would hold ownership and management of the properties, and use the design, brand and marketing network of the Wyndham group, Umrigar said.
“We have been developing projects for a long time, and this is part of a gradual move to develop a presence in the real estate business,” he said.
Gammon shares were trading 2.4% higher at Rs456.45 in a firm Mumbai market.