BUSINESS

Hyatt plans to open 10 more hotels in 5 years

By Swaraj Baggonkar in Mumbai
December 18, 2008 10:42 IST

Global Hyatt Corporation, one of the world's leading hospitality companies and the owner of the Hyatt brand, has said it aims to triple the number of hotels in India to 15 in the next five years.

The Chicago-headquartered company, which currently operates five hotels in India under the Hyatt Regency, Park Hyatt and Grand Hyatt brands in Mumbai, New Delhi, Goa and Kolkata, said it will also introduce two-three more brands in the country.

Its global brands such as Hyatt Place, Hyatt Summerfield Suites and Andaz will make its way to the country's Tier-I and -II cities.

"Our aim is to penetrate more cities in India while introducing more brands here. We will triple our hotel count in the next five years. Since our focus is of long term, we see our business here growing robustly," said Harmit Singh, chief financial officer, Global Hyatt Corporation.

Most of Hyatt's future properties will either be completely managed by the company or partnered with a hospitality player, he said.

"We will preferably go in for more of a management control structure and less of a partnership module," Singh told Business Standard.

Asked if the current economic slowdown will be impacting the company's expansion plans in India, Singh said Hyatt was feeling the impact of the downturn in the form of liquidity squeeze but ruled out any deceleration in the ongoing projects in the country.

Currently, Hyatt, along with DB Hospitality - the hospitality arm of Mumbai-based real estate company DB Realty -, is building a 70-storyed luxury hotel in south Mumbai at a cost of more than Rs 1,000 crore (Rs 10 billion).

A letter of intent has already been signed between the two companies. The tower, managed by the Park Hyatt brand, is set to become India's tallest building.

Construction of the tower, which will overlook the Arabian Sea, has already begun and the luxury hotel will commence operation in early 2012.

The Hyatt and DB Hospitality combine is also constructing a second Hyatt hotel in Goa.

The 320-room 5-star hotel is expected to start operations by December next year. Hyatt already runs the Park Hyatt in Goa, situated near the Arossim beach.

Meanwhile, in the wake of the recent terror attacks in Mumbai, Hyatt has upped the security arrangement in all its hotel properties across the country.

The company is currently working with local authorities to increase surveillance activity.

It has also formed a contingency and response team to tackle any unforeseen events.

Swaraj Baggonkar in Mumbai
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