Four Seasons buys stake in Magus

It is acquiring a "strategic" stake in Magus Estates & Hotels Pvt Ltd, a special purpose vehicle floated by the Jatias for their upcoming property at Dr E. Moses Road, Worli, Mumbai.

Four Seasons has also entered into a 20-year management contract for the property. The hotel, of course, will be called Four Seasons Mumbai. Four Seasons will also help in marketing it abroad.

"It will be a 5-star hoel by international standards band will compete with the best hotels in the world. The service will be in consistency with Four Seasons worldwide. It will meet future standards and will be the best hoel in Mumbai," Four Seasons Hotels & Resorts chairman & CEO Isadore Sharp told Business Standard.

Work has already begun on the Rs 260-crore project which will comprise 180-190 rooms and some 40-45 apartments. The hotel will be functional by the third quarter of 2005, Shiv Jatia, the managing director of Asian Hotels Ltd, said.

When asked if Four Seasons will acquire a controlling stake in the venture, Jatia said that the Jatia group would have a majority stake.

Four Seasons, which operates 58 properties worldwide (25 more are under development), has been looking at the Indian market for over ten years. And over the years, there has been a lot of specualtion on which Indian hotel chain would it tie up with.

"We looked at many opportunities but could not come to a conclusion. We see this project as the right opportunity and the right partner for us," Sharp said.

According to Sharp, the tourism industry has shown an uptrend in the last 4-5 months and the business prospects for the sector will improve further in the future.

"I think 2004 will be the first full year of the recovery. We should see normal to good growth over the next five years," he said.

"The last two years were the worst phase for the industry in the last 50 years. But it is over. Hotels in Mumbaiare running at 80 per cent occupancy, though 2,000 new rooms have been added in the last two years," Jatia added.