US-based Carlson Hotels Worldwide today announced it had signed an agreement to increase its stake in RHW Hotel Management Services (RHW), which runs the Radisson brand in India, by buying the stake of a private investor.
Carlson has acquired shares from Umak Investment Company which held 74 per cent stake in RHW, thus hiking its own stake to 87 per cent from 13 per cent earlier. RHW has been managing the Carlson branded hotels in India since 1998.
The move will help Carlson from being a mere franchise to a full-fledged hotel management company in India, similar to Intercontinental, Marriott or Starwood. It will result in a new integrated organisation for the hotel brand in India, encompassing development, projects, operations, marketing and sales.
Carlson officials refused to give details on the acquisition price. The transaction is subject to government approval.
The company also said it would triple its hotel assets over the next three years in India, to 78 properties from the present tally of 28 hotels. Carlson will add 50 properties by the end of 2012 across four brands - Radisson Hotels & Resorts, Country Inns & Suites, Park Plaza Hotels & Resorts and Park Inn.
Contracts for all the upcoming properties have already been signed, while a further 12-15 properties are under active negotiation with private parties, stated a senior executive from the company.
Hubert Joly, president and chief executive, Carlson, said: “India constitutes about 3 per cent of our worldwide properties. Out of the number of properties we are adding internationally, India will constitute about 20 per cent. We are optimistic about the country’s growth prospects as a leading emerging economy.”
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Radisson, Carlson’s contemporary upscale and upper upscale brand, which currently has 10 properties operational, will see the addition of 25 more hotels in three years.
Choice Hotels buys out India unit
Choice Hotels International, a US-based mid-market hotel chain operator, announced today that it would acquire the remaining 60 per cent ownership interest in Choice Hospitality (India) for an undisclosed amount.
Choice Hospitality India is the company’s master partner and franchise of its hotel brands in the country.
Choice Hotels operates under four brands in India — Comfort (Inn and Suites), Quality, Sleep Inn and Clarion.