Parsvnath Developers Ltd on Feb 4 announced a tie up with ITC to develop 50 hotels at a cost of Rs 2,500 crore in the next three to five years. Parsvnath Developers Chairman Pradeep Jain said Parsvnath will spend Rs 2,500 crore for building 50 hotels under ITC''s budget brand Fortune Park.
Parsvnath will develop and own the hotels and ITC will manage them. It is estimated that 50 hotels will add around 4100 rooms. The tie up will have 20 five star hotels, 20 four stars and 10 three stars and budget hotels. Most of these hotels will be in tier-II and tier-III towns. For ITC fortune is its mid range brand and is spread across smaller cities. The hotels will be known under the brand names of Fortune Select, Fortune Park, Fortune Inn and Fortune Faith. Analysts have still not accounted for hospitality as a part of valuations for real estate companies because they have only just started getting into this vertical. But one thing is certain, whatever be the challenges the deeper the pockets the higher the ability of a developer to hedge his projects.
Parsvnath will develop and own the hotels and ITC will manage them. It is estimated that 50 hotels will add around 4100 rooms. The tie up will have 20 five star hotels, 20 four stars and 10 three stars and budget hotels. Most of these hotels will be in tier-II and tier-III towns. For ITC fortune is its mid range brand and is spread across smaller cities. The hotels will be known under the brand names of Fortune Select, Fortune Park, Fortune Inn and Fortune Faith. Analysts have still not accounted for hospitality as a part of valuations for real estate companies because they have only just started getting into this vertical. But one thing is certain, whatever be the challenges the deeper the pockets the higher the ability of a developer to hedge his projects.
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