INDIAN real estate developer Emaar MGF and Accor, global leaders in economy and budget hotels, have announced a joint venture to bring the Formule 1 brand of budget hotels to India.
The new venture, Budget Hotels India Pvt Ltd, has planned investments of $300 million in 100 properties over ten years.
Emaar MGF is a partnership between global property developer Emaar Properties and MGF Developments. It has identified potential locations across the country for the new hotels, starting with the major metros. The company hopes to develop 50 hotels over the first five years, with another 50 to be developed in a second five-year phase. The total development will add 10,000 hotel rooms to the economy sector.
The tie-up with Accor marks Emaar's foray into budget hotels.
The agreement to form the JV was signed today in the presence of Emaar Properties Chairman Mohamed Ali Alabbar and
Accor CEO Gilles Pelisson said, "The Formule 1 product is ideally suited for India 's rapidly growing tourism market. The brand is recognized as the international benchmark for budget hotels and has been successful in both established and emerging economies. India has one of the world's most dynamic economies and there is currently a vast undersupply of quality accommodation. With major growth in airlines servicing India's international and domestic sectors, and the emergence of many new business districts around the country, we see a tremendous future for the Formule 1 brand."
Shravan Gupta, executive vice chairman and managing director, Emaar MGF, said, "We see huge potential in the hospitality space and we are moving aggressively in this direction by bringing in products across the value chain. Emaar MGF also has plans to construct 10-15 luxury hotels for which we have acquired land across the country."