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Emaar MGF and Accor form JV to develop 100 Formule 1 budget hotels across India |
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| ( Left to Right) DAVID BAFFSKY- CHAIRMAN, Asia- Pacific, Accor, GILLES PELISSON - CEO - Pacific, Accor | ||
| H.E. MHD ALI ALABBAR - CHAIRMAN, Emaar PROP. PJSC, SHRAVAN GUPTA - VICE-CHAIRMAN & MANAGING | ||
| DIRECTOR, Emaar MGF Land Pvt. Ltd. | ||
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| New Delhi, November 27, 2006: Emaar MGF, India’s leading real estate developer, and Accor, global leaders in economy and budget hotels, today announced a joint venture to bring the Formule 1 brand of budget hotels to India. The new venture, “Budget Hotels India Private Limited”, has planned investments of US$300 million over ten years.
Emaar MGF is a partnership between global property developer Emaar Properties and MGF Developments. The company has already identified potential locations across the country for the development of Formule 1 hotels. Starting with major metros, the company is looking at developing 50 hotels in the first five years of its operations, with the remaining 50 to be developed in the second phase. The total development will add 10,000 hotels rooms that cater for the budget travelers. The agreement to form the JV was signed today in the presence of Emaar Properties Chairman Mohamed Ali Alabbar and Accor SA Chief Executive Officer Gilles Pelisson. “India is a key growth market for Emaar, and we have committed US$1 billion – the country’s largest ever foreign direct investment in the real estate sector – to develop several projects major across the country,” said Alabbar. “Alongside master-planned residential communities and special economic zones, we regard the hospitality sector as integral in our growth strategy for India. The tie-up with Accor marks our foray into budget hotels – a niche segment that has tremendous growth potential.” |
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| 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 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. We are delighted to build on our already well-established and successful relationship with Emaar MGF.” | ||
| “With the recent boom in the international and national tourism, the Indian hospitality sector is witnessing an exponential rise in the number of budget travelers,” said Shravan Gupta, Executive Vice Chairman and Managing Director, Emaar MGF. “This has created a burgeoning demand for a new segment. To tap this opportunity, Emaar MGF and Accor have joined hands to introduce Formule 1 hotels in India.” | ||
| He added: “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.” | ||
| Accor is the acknowledged global leader in economy and budget hotels. With the Formule 1, Ibis and other hotel investments, Accor has emerged as the largest international investor in the Indian hotel sector. | ||
| Emaar MGF Land limited is India’s foremost joint venture in real estate with projects being implemented on a pan-India basis across top 30 cities. Emaar MGF has brought in the largest FDI amounting to approximately US$1 billion in the Indian real estate sector. The company is engaged in pan-India projects in residential, commercial, infrastructure and hospitality sectors in integrated master plans and special economic zones. | ||
| Note to Editors
About Emaar Properties PJSC: Emaar also entered the US market by acquiring John Laing Homes, the second largest privately held homebuilder in the country for US$1.050 billion. The company acquired Hamptons International, the UK-based realtor, for US$153.05 million to scale up its product sale competencies. Emaar is expanding into the retail sector with investments of over US$4 billion to develop approximately 150 malls in the Middle East, North Africa (MENA) and the Indian subcontinent. The award-winning developer has also teamed up with Giorgio Armani S.P.A to build and manage 10 Armani hotels and resorts across the world. In addition, Emaar’s education subsidiary is involved in establishing international schools in the MENA region and India, and its healthcare division will see the company invest around US$5 billion over the next decade in the MENA and South Asia markets. For more information, visit www.emaar.com. About Emaar MGF Land limited: Headquartered in New Delhi, the company started operations in India in mid-2005 and is engaged in pan-India projects in residential, commercial, infrastructure and hospitality sectors in integrated master plans and special economic zones. Bringing in world class technology, expertise and scale, the company is all set to build the India of 21st century through many world class projects across 30 towns in states like Punjab, Delhi NCR, Andhra Pradesh, Karnataka, Tamil Nadu, Kerala, West Bengal, Rajasthan, Gujarat and Maharashtra. About Accor:
About Formule 1: Formule 1 hotels offer modern functional rooms with basic comforts, including en suite bathrooms, for business and leisure consumers, and are often located in city centers, key suburbs, major roadways or near airports and transport hubs. The hotels will each feature upwards of 80 rooms, a restaurant serving local cuisines, modern telecommunications services, and 24-hour reception desk. For more details please contact: Anupama Chopra |
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