Parsvnath Hotels to invest Rs. 25,000-mn in three projects

New Delhi: Parsvnath Developers’ subsidiary Parsvnath Hotels Ltd, on Monday signed a memorandum of understanding with Fortune Park Hotels Ltd (FPHL), a wholly owned subsidiary of ITC Ltd, to manage 50 hotels across India in the next three to five years. Parsvnath Hotels Ltd (PHL) plans to pump in about Rs 2,500 crore in these hotel projects.

The strategic tie-up would have 20 five-stars, 20 four-stars and 10 three-stars and budget hotels. Under the agreement, PHL would own and develop the hotels and FPHL would manage them. The hotels would run under the brand name of Fortune Select, Fortune Park, Fortune Inn and Fortune Faith. More than 4,000 rooms would be constructed under these brands for various categories. Fortune Select would have at least 100 rooms, Fortune Park would have 75 or more rooms and other brands would have over 50 rooms.

Parsvnath is currently coming up with 17 hotel projects, of which, FPHL would manage seven projects in Ranchi, Lucknow, Indore, Jodhpur, Ujjain, Chandigarh Film City and Dehradun in the first phase. The first among these is expected to be operational by the first quarter of 2009, the company said, adding that all of these hotels would be operational by 2010.

Parsvnath is also developing hotels at Shirdi, Mohali, Hyderabad, Ahmedabad, Goa, Gurgaon, Kochi, among others, which would be managed in management contract with other hotel chain.

Commenting on the development, Mr Pradeep Jain, Chairman, Parsvnath Developers Ltd, said, “India is fast emerging as the preferred destination for tourists on the global map. Hospitality is, therefore, witnessing an upward growth. Seeing this tremendous opportunity, Parsvnath is venturing into the hospitality sector in a big way. Managing hotels requires expertise and we think Fortune Park Hotels Ltd is positioned, to optimally manage projects of different sizes, location and segment through its different brand extensions.”

The company is planning to develop 75-100 hotels in tier-II, tier-III and all the major cities. For these, Parsvnath Developers is eyeing strategic locations such as Delhi, Mumbai, Kolkata, Chennai, Pune, Udaipur, Jaipur, Navi Mumbai, Agra, Bangalore, Bhopal, Raipur, Jalandhar, Ludhiana, Vadodhra, Manesar, Surat, Aurangabad, Gandhinagar, Nagpur, Jaisalmer and Noida to develop hotels in near future.