Japan’s Prince Hotel set to enter India through StayWell Hospitality
Mumbai: Japan’s Prince Hotel Inc., a subsidiary of Tokyo Stock Exchange-listed conglomerate Seibu Holdings Inc., is entering India, following its acquisition of Sydney-based StayWell Hospitality Group, which has a presence in the country.
The company is looking to introduce its flagship five-star hotel brands The Prince and Grand Prince in India for which it has already started scouting for assets in the country, said Rohit Vig, managing director (India), StayWell Hospitality. He will continue to head the India region post the merger of the two companies.
This week the Tokyo-based firm announced that it will acquire StayWell Hospitality Group for AUD 50 million. Integration of the two companies is expected to be completed in the next three months.
“We will look at acquisitions of hotels going forward to expand specially in tier I cities like Mumbai and Delhi. Primarily we used to do management contracts. Now we are opening up to franchises, leases and acquisitions (of hotel assets),” Vig said.
Prince Hotels owns and operates 49 hotels under four brands. Of the total number of hotels, 42 of them are in Japan. The rest are in Taiwan and the US.
Stay Well Hospitality, which operates five mid-scale hotel brands, two Park Regis and three Leisure Inn hotels, has been planning to ramp up its presence to about 25 hotels by 2020. A few of these hotels would also be from Prince Hotel’s portfolio, he said, but declined to provide further details.
Staywell Hospitality also has seven under-construction hotel projects in India. Last month, it entered into an agreement with an Ahmedabad-based property owner for its 12th property that is likely to be operational by 2018.
“It’s a three months process in terms of bringing in brands from Prince Hotels. We want to create key brand differentiators for each. Once that is done we are looking forward to bring it here,” Vig said, adding that Prince Hotels’ two luxury and five-star brands Prince and Prince Grand are likely to be introduced in the initial stage.
The last two years have seen few big mergers and acquisitions in the hotel space globally. Last year, Marriott International Inc. completed the acquisition of Starwood Hotels and Resorts.
Post the $13 billion merger, the combined entity now owns around 5,700 hotels with more than 1.1 million rooms across 110 countries, creating the world’s largest hotel company globally.
In 2015, French hospitality major AccorHotels bought Toronto-based FRHI Hotels & Resorts and its luxury brands Fairmont, Raffles and Swissôtel for $2.7 billion.
- IMF estimates higher crude oil prices may not have any significant impact on India’s GDP
- Opening bell: Asian markets open higher; Bharti Infratel, Axis Bank, Biocon in news
- Indian scientists using artificial intelligence to predict early onset of Alzheimer’s
- People need to make preventive measure a habit if India is to become malaria-free by 2027: home insecticides makers
- Bollywood is in love with biopics. But will it last?