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The Canadian hotel group will also have an equity participation in the project, which is expected to cost around Rs 260 crore.

New Delhi , Oct. 25

THE Canadian luxury hotel group, Four Seasons Hotels and Resorts, has announced its maiden entry into the Indian market.

The group has entered into an agreement with Magus Estates and Hotels Pvt Ltd for a hotel in Mumbai.

The hotel, to be called the Four Seasons Hotel Mumbai, is to come up at Worli and is likely to open its doors some time in October-November 2005.

Speaking to Business Line, the Chairman and Chief Executive Officer, Four Seasons Hotels and Resorts, Mr Isadore Sharp, said that the Mumbai property would not only be a hotel but also offer service apartments.

"We will offer about 150-175 rooms, apart from having some service apartments," Mr Sharp said.

The Canadian hotel group will also have an equity participation in the project, which is expected to cost around Rs 260 crore.

"We will take a financial position in the project. The details are still being worked out," Mr Sharp said, and noted that Four Seasons would assume responsibility of the hotel management

"We are not involved in any hotel that we do not manage," Mr Sharp said.

Normally, the equity stake that Four Seasons looks for in such ventures is to the extent of 10-20 per cent.

The co-owner of Magus Estates and Hotels Pvt Ltd, Mr Shiv Jatiya, elaborated that the Mumbai project would have an equity component of about Rs 100 crore and debt component of about Rs 150-160 crore.

Apart from the hotel in Mumbai, Four Seasons will also look at opportunities in other cities like Bangalore and Chennai. "In time, we would like to have four to five hotels in India," Mr Sharp said.

On the issue of whether the tie-up between the two companies was an exclusive agreement, Mr Sharp said that while Four Seasons would "restrict" itself to the Jatiya Group for the work that they do in Mumbai, they could look at tie-ups with other groups for projects in different cities.

He added that the opening of the Four Seasons hotel would also benefit Mumbai as the Group had a "loyal following" of customers who were likely to visit the country.

When questioned on the status of the reported talks between the Oberoi Group and Four Season, Mr Sharp said, "We have ceased discussions with the Oberoi Group on that project."

The two groups were said to be in talks for having a strategic marketing agreement.

Incidentally, the Jatiya Group, which is also the owner of the Asian Hotels, currently runs the Hyatt chain of hotels in the country.

Interestingly, the announcement of Four Seasons to set up a luxury hotel in Mumbai comes close on the heels of the Hong Kong-based luxury hotel chain, Shangri-La Hotels and Resorts entering into a management contract with the new owners of the former state-owned Kanishka hotel for Shangri-La to open in Delhi.

The 354-room deluxe Shangri-La hotel in Delhi is expected to open its doors late next year.

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