InterContinental Hotels, Brigade Enterprises to build 10 hotels1 min read . Updated: 31 Oct 2013, 01:25 PM IST
The total investment for the hotels under the agreement will be around `600 crore, IHG says
New Delhi: Global hospitality company InterContinental Hotels Group Plc (IHG) signed a deal with Bangalore-based real estate developer Brigade Enterprises Ltd to build 10 hotels under its mid-market brand Holiday Inn Express, the IHG said on Wednesday.
Expanding IHG’s footprint in southern India, these proposed hotels will be owned by the Brigade Group and managed by IHG. The first two hotels under this partnership will open in Bangalore in early 2017, and the remaining eight are scheduled to open in four-seven years.
The total investment for the hotels under the agreement will be around ₹ 600 crore, the IHG company said.
IHG and Brigade Group are in partnership for Holiday Inn Tidel Park in Chennai, which is scheduled to open in the second quarter of 2015.
“India’s middle class is fast expanding and this is fuelling the demand for the mid-scale, select-service segment," said Douglas Martell, vice-president operations, South West Asia, IHG. “We have no doubt the business model of the brand will provide Brigade Group with good returns on investment per hotel."
IHG, which runs hotels under brands Intercontinental Hotels and Resorts, Crowne Plaza, Holiday Inn and Holiday Inn Express, has 14 hotels open in nine cities in India. Following the agreement, the group will have 57 hotels in the pipeline.
“Hospitality is an important business unit for the Brigade Group and we are working on strengthening this expertise," said M.R Jaishankar, chairman and managing director, Brigade Enterprises.
IHG runes 2,222 hotels across the globe and has another 473 in its pipeline.