Carlson to set up 52 new hotels by 2009
Making Room: Company to invest $15-20 million per hotel for expansion of Park Inn and Country Inn in India.
By Meenakshi Verma, TNN |
NEW DELHI: The US-based Carlson Hotels Worldwide has set aggressive expansion plans for India. Besides launching its luxury brand Regent in the country, the company plans to add about 52 hotel properties by 2009. Carlson Hotels South Asia executive vice-president K B Kachru told ET, “With the funding in place for our expansion plans, we expect to add about 26 hotel properties across all our brands by the end of this year and another 26 hotel properties by 2009.”
The company is likely to invest $15-20 million per hotel for expansion of its mid-market hotel brands — Park Inn and Country Inn in India. Carlson operates five global hospitality brands: Regent, Radisson, Park Plaza, Country Inn & Suites and Park Inn.
Currently all these brands are present in India with the exception of Regent. Carlson is also bringing in its super luxury brand Regent into India starting with the NCR region. “We plan to build two hotels properties under the brand Regent which is likely to come up by 2010-end. We are in the process for getting the necessary government approvals for the same,” according to Mr Kachru. The company would also look at setting up a Regent property in Mumbai.
For other brands, Carlson is looking to expand to state capitals, upcoming industrial towns and SEZ areas. Besides its luxury and mid-market hotel brands, Carlson has also identified new locations to expand the presence of its economy brand Park Inn.
“My only concern is that there are lots of hotel rooms being developed in the luxury segment while we believe the larger pie of the growth will come in from the mid-market hotel segment. Also, we need to develop leisure traveller destinations as currently only 20% of overall hotel occupancy in India is coming from domestic leisure travellers,” according to Mr Kachru.
Early this month, Carlson Hotels Worldwide Asia Pacific’s newly appointed managing director Martin Rinck said that the company would focus on India and China. The company’s has struck a strategic alliance to fund its expansion plans with a $1-billion Asian private equity fund, Lotus Hotel Investment Fund.
The company is likely to invest $15-20 million per hotel for expansion of its mid-market hotel brands — Park Inn and Country Inn in India. Carlson operates five global hospitality brands: Regent, Radisson, Park Plaza, Country Inn & Suites and Park Inn.
Currently all these brands are present in India with the exception of Regent. Carlson is also bringing in its super luxury brand Regent into India starting with the NCR region. “We plan to build two hotels properties under the brand Regent which is likely to come up by 2010-end. We are in the process for getting the necessary government approvals for the same,” according to Mr Kachru. The company would also look at setting up a Regent property in Mumbai.
For other brands, Carlson is looking to expand to state capitals, upcoming industrial towns and SEZ areas. Besides its luxury and mid-market hotel brands, Carlson has also identified new locations to expand the presence of its economy brand Park Inn.
“My only concern is that there are lots of hotel rooms being developed in the luxury segment while we believe the larger pie of the growth will come in from the mid-market hotel segment. Also, we need to develop leisure traveller destinations as currently only 20% of overall hotel occupancy in India is coming from domestic leisure travellers,” according to Mr Kachru.
Early this month, Carlson Hotels Worldwide Asia Pacific’s newly appointed managing director Martin Rinck said that the company would focus on India and China. The company’s has struck a strategic alliance to fund its expansion plans with a $1-billion Asian private equity fund, Lotus Hotel Investment Fund.
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