New Delhi : Europe's largest hotelier Accor and its local partner travel corporation Interglobe Wednesday announced the setting up of an investment fund to further expand their business in India.
"The fund will initially hold the assets for seven hotels in India which are currently owned jointly by Accor and InterGlobe, representing 1,750 rooms with a value of approximately $325 million on the completion of the hotels," said a statement issued by Accor.
All the seven hotels, including one Pullman, four Novotel and two Ibis will open between 2011 and 2013.
Accor and InterGlobe will hold 32 percent stake each in the fund while an affliate of Pacifica Partners will hold 36 percent.
Pacifica Partners is the asset manager for a joint venture hotel investment company set up by an affiliate of GIC Real Estate, the real estate arm of the Government of Singapore Investment Corporation, and Host Hotels and Resorts, a lodging real estate trust.
"India at this time is one of the most attractive lodging growth opportunities in the world. Pacifica views this fund as an excellent vehicle to take advantage of this compelling market by teaming up with Accor and InterGlobe," said Peter Meyer, managing director of Pacifica Partners.
In the five years since entering India with a joint venture arrangement with InterGlobe Enterprises, Accor has opened eight hotels.
