The Hindu Business Line : Istithmar plans 8 low-cost hotels

Mumbai April 4 Istithmar Hotels, a 100 per cent subsidiary of Dubai World's investment company Istithmar, plans to start eight low-cost hotels in India over the next five years.

Each hotel will have an investment of about $10-15 million. The company, as a franchisee of easyHotel, is also on the look out for partners in the real estate and allied segments for the venture. "Istithmar is investing over $400 million over the next five years to build 38 easyhotel.com properties in 17 countries, including India and Pakistan," said Mr Joe Sita, Chief Executive Officer, Istithmar Hotels.

While the initial focus would be on Mumbai, New Delhi and Chennai, the group intends going to tier II and III cities later. The first hotel should open by end 2008, Mr Sita said.

The concept of easyHotel was to offer safe, clean rooms with top class facilities at the best possible price. Rooms would be pre-fabricated and only need a concrete platform for commissioning. A 200-room hotel can be opened within 20 weeks after setting up of the concrete platform, he said.

Tentatively, the tariff would range between Rs 3,500-4,000 in tier I cities, Rs 2,500-3,000 in tier II and Rs 1,500-2,000 in tier III. Bookings would be through the Internet and like low-budget airlines, early birds stand to benefit.

Mr Stelios Haji Ioannou, chief executive officer, easyHotel, said the London easyHotel property charge on an average about £40 per room, but early birds benefited at £25. And, there were others who paid as much as £55.

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