9th Apr 2008 11:56
Millennium & Copthorne Hotels PLC09 April 2008 For Immediate Release 9 April 2008 MILLENNIUM & COPTHORNE HOTELS PLC "Joint Venture marks M&C Hotels' entry into Indian market" • Joint venture will own and develop hotels in Southern India • First entry into the Indian sub-continent • M&C to manage hotels under a new brand currently being developed Millennium and Copthorne Hotels plc (M&C) provides details on its joint venturecompany (JV) in India with Rakindo Developers Pvt. Ltd., to develop hospitalityprojects in India, marking M&C hotels' first entry into India. Under thisnon-exclusive agreement, the joint venture company, M&C Rakindo Hospitality,will develop two hotels in Chennai and Bangalore. The JV partners are alsolooking into developing more hotels in Southern India. Under the JV agreement, M&C Rakindo Hospitality is developing hotels catering tothe needs of the business traveller. The two new hotels will be managed under anew urban brand aimed at offering affordable contemporary business hotels to themarket. M&C is investing up to USD100 million in the JV. M&C owns 60 percent ofthe JV and Rakindo Developers own 40 percent. The demand for hotel rooms is soaring in India due to an increase in the influxof foreign tourists and corporate travelers, as well as a growth in domestictourism. Room prices in India have risen considerably due to the shortage ofhotel type accommodation, according to recent figures released at the ArabianHotel Investment Conference (AHIC). According to the 2007 Jones Lang LaSalleHotels India Digest, aggressive growth in RevPar has been recorded in three keyIndian cities of Delhi, Bangalore and Mumbai over the last five financial years. The hotel in Chennai is expected to be completed in 2009 while completion of theBangalore hotel is expected in 2010. Chairman of Millennium and Copthorne Hotels plc, Mr Kwek Leng Beng, comments:, "The Group's first foray into India is to take advantage of the rapid growth ofthe Indian economy. With very high room rates throughout India, we believe thatthere is demand for a well-designed product catered to the business travellerwho may be unwilling to pay 5-star hotel rates. There is a strong basis tobelieve in the long-term attractiveness of the Indian hospitality market. Inview of this, we hope to focus on markets with high investment potential andbuild new business hotels in major growth cities in India over the next fiveyears. Rakindo is a valuable partner who has a strong network in the localbusiness community and government and knows the conditions and potential of theSouthern Indian market." Managing Director, Rakindo Developers, Prasad Koneru further comments:, "The tie-up between M&C and Rakindo Developers, makes tremendous business sensekeeping in mind the booming demand for business class hotel rooms in India. TheIndian economy is slated to grow at an average of eight per cent plus for thenext decade and we feel that this tie-up will help us tremendously into andcater to the growing needs of the business traveller in India." - END - Enquiries:Hong Leong Group SingaporeCassandra Kong - Assistant Manager Group Corporate Affairs Tel: (65) 6428 9306 Email: [email protected] Buchanan Communications Tel: 020 7466 5000Tim Anderson / Charles Ryland / Rebecca Skye Dietrich [email protected] Notes to Editors: Rakindo Developers Pvt. Ltd is a 50:50 joint venture between Chennai basedTrimex Group and UAE based Rakeen Pvt. Ltd. Rakindo Developers Pvt. Ltd, plansto expand into the hospitality sector. Incorporating advanced technology, smart design and modern styles in acomfortable, casual environment with a lifestyle element, the hotels will belocated centrally in key cities in India. The first hotel to be completed willbe in Chennai's vibrant T Nagar area - a large commercial district and one ofthe major hubs for business, shopping and entertainment, Chennai is the hub forthe textile and jewellery industry in India. The Chennai hotel will be a120-room property. The second hotel in the offing is the 300-room hotel in Bangalore located in theWhitefield KIAB Export area. It is a key IT district housing offices of majorinternational IT giants, lending Bangalore its pride of place as the "SiliconValley of India". Bangalore is also the manufacturing hub of such heavyindustries such as aerospace, space and defence sectors, providing an excellentbase and hinterland for business travel into the cities. This new product is now in its final phase of completion and underscores M&C'scommitment to building a stronger footprint in hospitality within Asia. Thisvibrant urban brand promises to provide synergistic value to the new generationbusiness traveller who are independent and technology savvy travellers. Thus,this new approach that will offer guests an overall sensory brand experience -not just a hotel - aimed at redefining the business hotel segment in India,"added Mr Tan Kim Seng, Senior Vice President, Millennium & CopthorneInternational Limited (MCIL). The new brand being developed by M&C meets the current need in the India marketfor players to bridge between the five-star and two-star market segments andwill cater to the demand for a superior product at an affordable price point.The brand promise is to deliver a unique lifestyle experience relevant to boththe corporate and leisure set of the new generation traveller mentioned abovecontinued Mr. Tan Kim Seng. The hotels will feature contemporary, urban-inspired guestrooms with smartdesign features that promise to make guest stays memorable - from modularfurniture designed to encourage multi-tasking and productivity, to swivelingflat-screen televisions. Featuring landscaped areas, the hotel will enhance theguest experience with well-integrated technology that is user friendly and fussfree, offered in a welcoming environment that provides road warriors withconnectivity for business needs and also a casual environment to unwind afterthe flurry of an extensive business day. One-hundred percent wireless, the hotels will open with a first-of-its-kindbusiness concept which will include private business booths in a casual setting,specially equipped for conducting business meetings. Our upcoming hotel properties in Chennai and Bangalore will set a new benchmarkin quality and offerings for the business traveller. Both Chennai and Bangaloreare witnessing unprecedented business travel growth and this tie-up betweenRakindo and M&C will offer the right mix between amenities, ambience and pricingfor business travellers to these two booming Indian cities, said KishoreKothapalli, Director, Rakindo Hospitality. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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