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Others Landmark to check in with Rs 500 crore investment

Landmark to check in with Rs 500 crore investment

Author | Source: The Economic Times | Wednesday, Apr 25,2007 9:31 AM

Landmark to check in with Rs 500 crore investment

BANGALORE: The booming hotel industry in India seems to have caught the fancy of major retail players. Foraying into hospitality business for the first time, Dubai-based retail major Landmark has proposed to set up 12 budget hotels across India in the three-star category.

Unveiling an investment of over Rs 500 crore for India alone, the group plans to operate the hotels under its value brand - CityMax. Initially the CityMax hotels will be fully-owned by the group. However, Landmark could look at contract management route eventually. Landmark is targeting over 20 hotels across India and UAE by 2009.

The group has identified land parcels across 12 cities, including four metros, and other tier II cities. Comprising 150-200 rooms, CityMax hotels are expected to become operational in the next one year and room rents will range between Rs 2, 000 and Rs 4, 000. The projects are expected to come up closer to central business districts.

“Our offering will not be cut and dry affair. It will have a certain degree of customer experience and room service steeped in Indian values,” Ravi Saxena, MD of CityMax Hotels India, told ET.

He further added, the hotel chain will not be offering standardised room tariffs across country. Apart from the CityMax hotels, under the leisure division, the group is looking at adding 20 family entertainment centres-Fun City in India.

Currently, it operates one in Chennai. Also the first hypermarket being planned in Bangalore is expected to become operational within three months.

Meanwhile, Landmark, which currently operates 11 Lifestyle stores and five Lifestyle Home Centres in India, plans to invest $500 million on expansion plans over next three years.

This investment includes expansion of its retail, hypermarkets, leisure and hospitality businesses in India. Landmark is looking at adding 26 Lifestyle and 10 Home Centres in the next 36 months.

The group's value retail offering - Max - currently operates eight stores in India and is likely to grow to 50 stores over the next four years.

Tags: e4m

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