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Multi-branded hotel chain, InterContinental Hotels Group (IHG), is planning to exit three of its InterContinental branded properties in India in the next few years as it plans to restructure the brand.
“We will have to reassess the InterContinental brand. Our priority will be to get the brand at some of the key cities but right now, we really need to reform the brand in India,” Mr Chris Moloney, Chief Operating Officer, South West Asia, IHG, told Business Line .
IHG at present has four InterContinental branded hotels in the country with two more in the pipeline. According to Mr Moloney, IHG is developing 45 properties in India at the moment with a target to have 150 by 2020.
“Almost 75 per cent of the 45 hotels under development are under the Holiday Inn brand,” he added.
The global hotel chain also announced a deal with Duet India Hotels Group to develop 19 Holiday Inn Expres hotels in the country by 2016.
Investment
As part of the deal, IHG will invest through a 24 per cent equity stake, making a multi-year investment of $30 million. The 19 Holiday Inn Express hotels will add approximately 3,300 rooms to IHG's current pipeline of over 10,000 rooms in 46 hotels.
“Three of the 19 hotels planned are under development. The first Holiday Inn Express is expected to come up in Ahmedabad with 170 rooms by the middle of 2012,” said Mr Navneet Bali, Chief Investment Officer, Duet India Hotels.
He added that two more Holiday Inn Express' are under development in Hyderabad, with 230 rooms, and Chennai with 140 rooms. Both these are likely to start operations by 2013.
Locations
Commenting on the kind of locations IHG is planning for the Holiday Inn Express brand, Mr Moloney said, “Close to airports and any transport hub would be perfect for such a brand.”
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