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Bass group of hotels eyeing acquisitions in India, to expand

The Britain-based Bass group is planning to acquire properties and hotels in India as part of its future growth strategy for the country.

The group is also working towards expanding presence in India by increasing the visibility of its three group companies -- Crowne Plaza, Holiday Inn and Intercontinental.

J T Kuhlman, president of Intercontinental-Crowne Plaza Hotels and Resorts, said the group has chalked out a $ 750 million expansion plan for the Asia Pacific region.

''We are actively looking at acquiring hotels and properties in India, particularly the ones which are going under. Although we have not officially initiated talks with any party in this regard, we have our options open,'' Kuhlman said.

On the reasons for having targeted Asia-Pacific and particularly India for the growth strategy, he said, ''Over the years, the most successful formula has been to open hotels and pick up properties during bad times and prepare for the good times.'' Australia also figures prominently in its list of countries with immense growth potential.

Kuhlman said over the next five years, the company is looking at opening more hotels, particularly under the Crowne Plaza and Holiday Inn brands in India. ''We already have 16 Holiday Inns in India and we have not fixed any cap on the number of hotels we intend to get under our umbrella.''

Besides, Intercontinental has also strengthened its agreement with the Delhi-based Bharat Hotels Limited by tying up with BHL's new hotels in Bombay, Goa and Srinagar.

The tie-up with BHL, Kuhlman said, is on a non-exclusive basis and the company is exploring possibilities of entering into agreements with other hotels in the country.

Lalit Suri, chairman and managing director of BHL, said, ''Intercontinental's exceptional marketing and sales strength along with operational expertise will enhance the company's goal of providing an excellent hospitality product. We hope to be third time lucky with intercontinental.''

BHL had tied with up with Intercontinental barely a month after its 30-month marriage with Hilton broke off. Under the ten-year joint management contract, BHL will continue to retain full control of financial matters pertaining to the hotel while the British company would be responsible for day-to-day operations, implementation, integration and upgradation of the 445-room hotel to Intercontinental's standards.

With this tie-up, BHL seems to have come a full circle. In 1988, when the group opened its first hotel in the capital, it had joined hands with the Bass group company -- Holiday Inn. However, the tie-up did not work out and BHL decided to part ways and tie up with Hilton Hotels. As even that venture could not work any wonders on the company's bottomlines and returns, the Delhi-based group severed ties with Hilton and has now come back to the Bass group, albeit with Intercontinental.

BHL, he said, has invested Rs 600 million for refurbishing the Srinagar Hotel while an additional Rs 2.20 billion were spent in the Bombay and Goa properties.

The Intercontinental Bombay is a 400-room hotel located in Andheri east. The Goa intercontinental resort, set in south Goa, is proposed to open in September 2000 while the Grand Palace Srinagar is a 122-room palace resort.

UNI

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