Taj set to foray into China with biz hotel in Ningbo
Look east seems to be the expansion mantra for the Taj group. This time the hospitality major is foraying into China targetting Ningbo city in the eastern mainland.
By Urvashi Jha & Boby Kurian, TNN |
BANGALORE: Look east seems to be the expansion mantra for the Taj group. This time the hospitality major is foraying into China targetting Ningbo city in the eastern mainland.
The entry project for Indian Hotels Company (IHCL), which operates under the Taj brand, will be a business hotel, sources said. The move stems from Ningbo government’s proposal to boost the city’s profile with the establishment of an international trade mart, permanent show centre, a convention and exhibition centre.
Taj could build the property through a joint venture with the Chinese partner coming in with real estate, or build the hotel solely, or combine it with the international trade mart’s office buildings, sources said.
Currently, there are no five star hotels in Ningbo that can meet the growing demand in the region. After the completion of the International Trade Mart in Ningbo, government estimates suggest that nearly 40,000 people could visit the city daily.
With 10,000 international traders setting up branches in the city, Ningbo is expected to become a high density international business zone, sources added. The government is also looking at 100 transnational retail enterprises to set up national headquarters or purchasing centre in Ningbo.
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All these developments could convert this city located near Yangtze river into a huge potential market for the Taj group. The proposed business hotel that will spread over 2.4 acres will be designed to meet the needs of national and global businessmen of International Trade Mart. The Rs 1,127-crore IHCL is also in the midst of charting out ambitious plans for properties in Singapore, Hong Kong and Bali as part of developing a larger regional footprint. However, much of this expansion would come through management contracts.
Besides tapping the gateways in the Far East, IHCL is also pursuing inorganic growth in US and Europe markets. Last week, it announced $170 million acquisition of Ritz Carlton property in Boston, and could follow it up with more buyouts.
IHCL is also stepping up action in the Middle East and in South Africa where it is currently evaluating at least three projects.
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