The Hindu Business Line : Cabana to invest $1.2 b in Best Western hotels in India

Mumbai May 28 Best Western International, a US-based hotel chain brand with global presence, appointed Cabana Hotel Management Private Ltd as its master licensee, here on Monday.

Cabana group will also invest $1.2 billion for building new hotels and branding over 100 sub-licensed hotels under Best Western in India over next seven years.

Dr Prabhu Goel, Co-Chairman of Cabana Group, told presspersons, "Our business model will work at three levels. First, we will develop the existing franchisees of Best Western in India; second, look for properties, get them under the brand of Best Western and provide them with managerial and other necessary support; and third build our own hotels."

To begin with, Cabana plans to establish hotels from three-star to premier (four star and above) category in Bangalore, Bhubaneshwar, Ooty, Rameswaram, Kanyakumari and Jaisalmer over the next two years.

Best Western's existing properties are in Gurgaon, Mumbai, Pune, Hyderabad among others.

The international chain also has a premium segment hotel in Moradabad in Uttar Pradesh called Best Western Premier Holiday Regency.

The pricing of rooms in the upcoming properties will be lower than the existing five-star hotels, though the services would be at par with any luxury hotel in India. "The current pricing in five-star hotels is becoming increasingly difficult for a regular business traveller. Our aim will be to have a market-based approach across all cities," Dr Goel said.

Mr David T. Kong, President and Chief Executive Officer, Best Western International, said, "India tops the rank of our focus markets." Cabana Hotel Management Private Limited is a Mumbai-based company with its promoters based in US.

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