Nusli Wadia-promoted Bombay Dyeing is foraying into hospitality with two hotels at Worli and Dadar in Mumbai.
The company is in talks with Starwood Hotels & Resorts, for its brands like Sheraton, W Hotels and St Regis.
Sources familiar with the development say Bombay Dyeing is also talking to Peninsula Hotels, which runs seven luxury hotels in the world. The Peninsula Hong Kong is considered the world's most luxurious hotel.
The hospitality project is being headed by Wadia's younger son and joint managing director of Bombay Dyeing, Ness Wadia, who oversees the textile major's diversification into real estate development and retailing.
When contacted, Wadia said, "We will award a contract for the management of the hotels to one that fits into the overall scheme, which includes the location, size and luxury scale."
With domestic and international tourist arrivals increasing every year, hospitality is a booming business in India. The country has a shortage of 1.1 lakh rooms, which has seen average room rates rise 18-22 per cent annually.
Bombay Dyeing owns 40 acres at Dadar and 20 acres at Worli. It is developing mixed use real estate comprising apartments, office space, malls and hotels at these two sites.
Of the proposed 142 apartments at Dadar, it has already sold 60 per cent. "We never advertised. It was by invitation only and the price was not negotiable," Wadia said.
The cost of these 2,000-4,000 sq ft apartments recently touched Rs 18,000 per sq ft.
Wadia is looking at middle income housing as well and recently won a joint-venture bid for a middle income housing project in Pune.