Carlson bets big on India

January 15, 2010 11:04 pm | Updated 11:04 pm IST - CHENNAI

Carlson Hotels Worldwide (CHW), a leading global hotel chain with operations in more than 1,060 locations in 77 countries, has drawn up aggressive expansion plans for India. To be implemented in the next three years, the plan envisages to add 50 hotels to its present portfolio of 28 across its four brands namely Radisson Hotels & Resorts, Country Inns & Suites, Park Plaza Hotels & Resorts and Park Inn.

Besides, Carlson is also introducing its luxury brand ‘Regent Hotels & Resorts’ in India under which it will be operating a hotel with 160 guest rooms and suites in Gurgaon by 2013. It has tied up with real estate major Pioneer Urban Land and Infrastructure which is developing the property.

The growth plans for India, which were well under way, would strengthen Carlson’s position as the largest and fastest-growing international hotel operator in the country by number of hotels, according to Hubert Joly, President and CEO of Carlson. “We are optimistic about India and its growth prospects as a leading emerging economy,” he said.

“The growth for Carlson was extraordinary in India compared to other markets in the last 4-5 years. In 2009 it has done very well in spite of global recession,” Mr. Joly said. “Carlson has three per cent of its hotels around the world in India. The plan is to triple the portfolio in India within three years”, he added.

Radisson Hotels & Resorts was the most visible brand in India and the plan was to add 25 hotels under this brand to have a total of 35 by 2012, Mr. Joly said.

Carlson will be adding 15 to its current portfolio of Country Inns & Suites in India, taking the total to 24 under this mid-market brand.

While Park Plaza Hotels & Resorts, the upper midscale brand, will see an addition of eight hotels to its existing six hotels, the brand Park Inn will get two more to increase its tally to five.

“The mid-scale market is still not matured. However it is set to achieve a faster growth in the next ten years. The growth will be both from corporate and leisure sides,” Mr. Joly said. The expansion plans in India will involve an investment of $35 million (Rs. 160 crore).

Raises stake in RHW

Meanwhile Carlson has increased its stake to 87 per cent in RHW Hotel Management Services, which manages Carlson’s brand in India, from is existing 13 per cent. “The acquisition will result in an integrated organisation for Carlson Hotels in India, encompassing development, projects, operations, marketing and sales,” according to K. B. Kachru, Executive Vice-President for South Asia. He said Carlson was looking to leverage on its leadership position by growing its managed properties portfolio in the long term through strategic partnerships.

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