Business Daily from THE HINDU group of publications
Thursday, Jul 05, 2007
ePaper
Business Daily from THE HINDU group of publications Thursday, Jul 05, 2007 ePaper |
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Marketing
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Outlook ‘Acquisition not to impact Hilton operations’
Tunia Cherian Chennai, July 4 The Blackstone Group’s $26-billion deal to buy the Hilton brand will not have any impact on the operations of the Hilton brand in India. According to Mr Siddharth Thaker of the New Delhi-based hospitality consultant, HVS, the change in ownership of the Hilton brand would have no impact on the brand operationally. The deal was unlikely to impact the hotel industry either. The deal could be viewed as part of a trend in which hedge funds and private equity players were increasingly expanding their real estate and hotel portfolios, Mr Thaker said. Investments by private equity players give hotels access to resources that could help them rapidly expand across the globe, he said. Citing the acquisition of the Le Meridien brand by Starwood Hotels & Resorts Worldwide Inc in November 2005, a Mumbai-based real estate consultant said it was becoming common for large funds to make financial investments in the hotel sector. The Blackstone deal was unlikely to have any impact on the Indian operations of the Hilton brand in the medium-term unless it was sold to another hospitality group, he said. In 2003, Hilton entered into a co-branding alliance with EIH Ltd, which owns the Oberoi and Trident hotel chains. Under that deal, eight properties of EIH were rebranded as Trident Hilton Hotels. Mumbai’s iconic Oberoi Towers was also renamed the Hilton Towers under the marketing alliance.
More Stories on : Outlook | Mergers & Acquisitions | Hotels
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