Two years ago, the two had decided that Tulip Star would manage the hotels owned by the group.
The group owns four hotels -- two in Delhi and one each in Mussoorie and Agra -- and is putting up another one in Jaipur. The group has now decided to launch its own hotel brand by mid next year. But sources refused to disclose the brand.
Tulip Star Hotels was formed two years ago by Kerker to manage mid-market hotels.
Sources disclosed that the Jaiprakash group was also approached by international hotel chains like Radisson, Marriott and Bass Hotels & Resorts for a franchise or management agreement. But it has finally decided to go solo with its own brand name.
The company is also weighing the option to bring its Mussoorie property under one umbrella. Currently, the Mussoorie property is owned by Jaypee group company Mussoorie Hotels Ltd and rest of the hotels belong to the other group company - Jaypee Hotels Ltd.
"The company has achieved both critical mass in terms of number of hotels as well as necessary management skills to make foray into Indian hospitality sector in a big way. A company-owned brand name is first major step in this direction," the source said.
Declining to provide further details in this issue, the source said, "Currently, the company is assessing various aspects related to our hotel business. A final decision regarding the name of hotel brand will be taken only after the completion of the first phase of Greater Noida Golf project and the renovation of three existing properties in Delhi and Mussoorie."
Currently, the three operating hotels of the company, including Vasant Continental and Hotel Siddharth in Delhi and Residency Manor in Mussoorie, are under renovation. The total cost of renovation is about Rs 23 crore.
The fourth operating hotel of the company, 350-room Jaypee Hotel Agra has been inaugurated in March 1999. The company has invested Rs 140 crore in the Agra project.
JHL plans to add its Rs 80-crore Jaipur hotel project before renaming its properties under one brand name. The work on Jaipur project is likely to start in the next couple of months.
Recently, the group has signed an agreement with Greater Noida Industrial Development Authority (GNIDA) to develop an integrated complex over 438 acres of land.
The Rs 600 crore project will have golf course, health Spas, Hotels, commercial and other recreational complexes. The first phase of the project which includes a 18-hole golf course and a club house is scheduled to be completed by mid-2001.
