Parsvnath Forges Alliance With ITC To Develop 50 Hotels

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 & ITC Join Hands

Parsvnath Developers Ltd has announced that Parsvnath Hotels Ltd (PHL), a subsidiary of Parsvnath Developers Ltd, has signed a MoU with Fortune Park Hotels Ltd (FPHL), a wholly owned subsidiary of ITC Ltd, to manage 50 Hotels across the country in next three to five years.

PHL plans to make an Investment of approximately Rs 2500 crore in these hotel projects. The strategic tie up would have 20 five-stars, 20 four-stars and 10 three-stars & budget hotels.

Under the agreement PHL would own and develop the hotels and FPHL would manage these hotels. The hotels would run under the brand name of Fortune Select, Fortune Park, Fortune Inn and Fortune Faith. More than 4000 rooms would be constructed under these brands for different categories. Fortune Select hotels would have at least 100 rooms, Fortune Park would have 75 or more rooms & other brands would have at least 50 rooms & more.

Parsvnath is currently coming up with 17 hotel projects of which FPHL would manage seven projects in Ranchi, Lucknow, Indore, Jodhpur, Ujiain, Chandigarh Film City and Dehradun in the first phase. All of these hotels would be operational by 2010. The first among these is expected to be operational by first Quarter of 2009. Parsvnath is also developing hotels at Shirdi, Mohali, Hyderabad, Ahmedabad, Goa, Gurgaon, Cochin among others, which will be managed in management contract with other hotel chain.

The Company is planning to develop 75-100 hotels in tier-II, tier-III and all the major cities across country. For these, Parsvnath Developers is eyeing strategic locations like 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.