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 travellers.
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 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.”
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 major 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 travellers,” 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 Private 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.
About Emaar Properties PJSC:
Emaar Properties, the Dubai-based Public Joint Stock Company, is one of the world's largest real estate companies. Emaar has several real estate projects under various stages of development in Dubai. The company also has projects across the region covering Saudi Arabia, Egypt, Turkey, Morocco, Syria, Jordan, India and Pakistan.
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 Private Limited:
Emaar MGF Land Private Limited is a joint venture between Emaar Properties PJSC – one of the world’s leading real estate company and MGF Developments – India’s leading real estate developer. The company has been instrumental in bringing the largest FDI in the Indian real estate sector.
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.
Accor, European leader in hotels and tourism, global leader in corporate services, operates in nearly 100 countries with 160,000 employees. It offers to its individual and corporate clients nearly 40 years of expertise in its two core businesses:
• Hotels, with the Sofitel, Novotel, Mercure, Suitehotel, Ibis, Red Roof Inn, Etap Hotel, Formule 1 and Motel 6 brands: over 4,000 hotels and 475,000 rooms in 90 countries, as well as strategically related activities, such as Lenôtre;
• Services to corporate clients and public institutions: 21 million people in 35 countries benefit from Accor Services products – meal and food vouchers, people care, incentive and loyalty programs.
About Formule 1:
The Formule 1 (and associated ETAP) brand, the industry benchmark for low-cost hotels in the world, comprises over 650 hotels with 57,000 rooms in 12 countries, including France, Germany, Italy, Great Britain, Brazil, South Africa, Japan, Indonesia and Australia.
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 centres, 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.
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