Duet India Hotels Group, the hotel investment arm of global asset manager Duet Group, has signed a joint venture deal with IHG to develop 19 new Holiday Inn Express hotels across India.
IHG will invest through a 24% equity stake, making a multi-year investment of US$30 million into the partnership. This investment will go into a fund to support the building of the 19 hotels over the next five years. The new properties will add approximately 3,300 guestrooms to IHG’s current India development pipeline of more 10,000 guestrooms across 46 hotels and are expected to be operational by 2016.
“This deal is a great example of our strategy in action,” says Richard Solomons, IHG’s chief financial officer and head of commercial development. “By investing a small amount of our own capital, we have established a strategic relationship with a fantastic partner who knows the market, securing a future fee stream and opening up a huge opportunity for us to develop the Holiday Inn Express brand across India. With strong economic growth and an expanding middle class in India, we forecast strong future demand for mid-market and select-service hotels, cementing Holiday Inn Express’ position as one of the fastest growing brands in the hotel industry.”
Upcoming Holiday Inn Express hotels will be primarily located in India’s major metro areas and key secondary cities, which are well positioned to drive growth and continued investment opportunities. Markets specified for development include New Delhi, Mumbai and Bangalore.