The Hindu Business Line : ITC Hotels joins hands with Starwood

LUXURY COLLECTION: Mr Y.C. Deveshwar, Chairman, ITC Ltd, flanked by Mr Miguel Ko (left), President, Starwood Hotels & Resorts, Asia Pacific, and Mr S.S.H. Rehman, Executive Director, ITC Ltd, at a press conference in the Capital on Thursday. - Kamal Narang

New Delhi April 12 ITC Hotels will soon be rising up the value chain, on the back of its new association with its old partner Starwood Hotels and Resorts, by bringing the `Luxury Collection' of hotels to India.

The association could also take ITC outside the country.

"The T in ITC for me stands for transnational. I don't discount the possibility," said Mr Y.C. Deveshwar, Chairman, ITC, commenting on the possibility of an ITC property outside the country.

For now, seven ITC hotels will be upgraded to be a part of the 64 premium properties worldwide that are recognised under the `Luxury Collection' brand.

The Welcome Hotel in New Delhi will now carry the Sheraton brand, which belongs to Starwood.

"India is the fastest growing market, and with the growth rate of the economy soon be on par with China. There are also very few geographies in the world that can match India in terms of unique properties with deep local roots," said Mr Miguel Ko, President, Asia-Pacific, Starwood Hotels.

ITC would be spending Rs 5,000 crore in the next four to five years on hotel projects. With 75 hotels (5,500 rooms) under the chain, ITC is expecting to add another 27 properties (3,000 rooms) under its management in the coming years.

Anticipating Premium

Luxury rooms will be pricier by $50, and according to Mr Nakul Anand, Divisional Chief Executive, Hotels, the company anticipates a premium on other rooms, with what it describes as "the creation of a higher value."

Declining to comment on growth in coming quarters, the head of India's biggest cigarette maker, Mr Deveshwar, said the company's targets for the next five years were to double sales, increase operating profits 2.5 times, and net turnover 2.5 times.

With a turnover of almost Rs 15,000 crore ($3.5 billion), the Kolkata based company also has interest in packaged food, paper, retail, and agarbattis.

The company recently entered the snacks segments with Bingo.