DLF partners with Hilton to promote hotel chain

01 Dec 2006

Chennai: US-based Hilton Hotels Corporation and India's DLF Ltd have decided to promote a 26: 74 joint venture to develop and own 75 hotels and serviced apartments in India over next seven years.

The JV-owned hotels will represent several brands from Hilton Hotels Corporation's portfolio, including Hilton Hotels, Hilton Garden Inn, Homewood Suites by Hilton and Hilton Residences.

The proposed joint venture company will develop and build these properties, while Hilton will manage them. Hilton would invest up to $143 million in the Indian joint venture over the next five to seven years.

The initial stage of the joint venture will involve 20 hotels in a number of key locations including Chandigarh, Chennai, and Kolkata.

A large number of these hotels are expected to be Hilton Garden Inns, a business hotel brand, offering focused service. Beyond the initial 20 sites, the Indian joint venture company will continue to identify and acquire sites and undertake new hotel developments.

According to Ian Carter, executive vice president, Hilton Hotels Corporation and CEO, Hilton International Operations, "India is an outstanding market for hotel development, given its powerful combination of economics and demographics. Hilton will build on its collective experience in India and the opportunity with DLF is a compelling next step to capitalise on the development momentum and build our Hilton family of brands in India."

The formation of the joint venture is pending receipt of formal written approval from the central government.

The joint venture apart, Hilton will manage five hotels, which are already under development — Hilton Bangalore, Hilton Residences at Embassy Gold Links Bangalore, Hilton Chennai, Hilton Hyderabad Palace and Shilim Retreat by Hilton.

Hilton has a strategic alliance with EIH Ltd whereby it has eight properties under its brand name.