Emaar MGF to invest Rs15,000cr in hospitality

Realty firm Emaar MGF Land, currently in the process of raising up to Rs 6,457 crore through an IPO, is planning an investment of Rs 15,000 crore for its pan-India foray in the hospitality segment.

Emaar MGF Land, a joint venture between Emaar Properties PJSC of Dubai and domestic player MGF Development, intends to develop hotels across the value chain, covering the luxury, up-market, mid-market and budget segments, sources said.

Emaar MGF is planning to add about 26,000 keys over the next seven years with hospitality properties in multiple cities, sources added.

The current projects under development in the business and luxury categories are located in Delhi, Kolkata, Amritsar and Dehradun to be completed in fiscal 2009-2010.

These projects would add about 1,100 rooms over the next three years.

For the current project roll out, Emaar MGF Land has entered into an operating agreement and a memorandum of understanding with global hospitality giant Marriott Group to develop properties in Kolkata and Amritsar. The JW Marriot is one of the most luxurious & elegant brands of the Marriot Group.

Further, the company also has a management agreement with Intercontinental Hotel Group to develop hotels in Kolkata and Dehradun.