DLF plans to tie up with the global hotel major Hilton and foray into the hospitality business to build a hotel chain across the country. DLF and Hilton would float a joint venture company, where the real estate developer would hold 74 per cent and the hotel major would hold 26 per cent. In future, DLF may dilute its equity to 51 per cent.
According to the proposed arrangement, DLF would carry out the construction work and develop the hotel, with the day-to-day operations managed by Hilton. The group wants to build a chain of hotels including some 10-12 luxury resorts in certain exotic locations and 100 business hotels with an average capacity of 100-250 rooms in the tier-II cities.
To start with, DLF would follow the SPV (special purpose vehicle) route for its hotel business and would replicate this for its SEZ (special economic zone) business.
DLF has already signed an MoU with the Punjab Government for developing an 11,000-acre multi-product SEZ at Amritsar. The Union Commerce Ministry has also cleared two more SEZ proposals of DLF, at Ambala (5,000 acre) and Gurgaon (20,000 acre).
work for the first phase of Amritsar SEZ would start within the next six-eight months.
There would be an investment of Rs 1,000 crore. DLF would be tying up with several service companies for specific activities at the SEZ. Currently, the group is busy in land acquisitions.
At present, DLF is developing several projects spread across 19 cities. The company claimed that its total income has increased from Rs 630 crore in 2004-05 to Rs 1,259 crore in 2005-06. |
