Rakeen India joins hands with Lotus Hotel Investment Fund to develop Hotels in India

The Rakeen India Operations Company (Rakindo), a joint venture company with Vishwateja Projects Private Limited, India, has signed a Memorandum of Understanding with Lotus Hotel Investment Fund (Lotus) - a private equity fund which is in the process of being launched and will invest in business hotels in Asia - to jointly develop business hotel properties in high growth centres in India.

According to the MoU, Lotus will form a joint venture company to invest in several three and four-star hotel properties across Asia in general and India in particular, with six major cities in South India being the initial focus.

Dr. Khater Massaad, Chariman of the Board of Directors of Rakindo and CEO of Rakia said, “This joint venture will generate substantial value to the partnership projects as it will combine the financial resources and property development expertise of Rakindo with the financial strength, and hotel development and management capabilities of Lotus. This partnership will jointly develop world-class business hotels in key cities across India, at a time when the country is witnessing unprecedented economic boom.”

According to the latest global economic watch, the demand for hotel rooms is soaring in India, with its growing status as a premier holiday and business destination in Asia. Moreover, the sharp increase in domestic travel in India is adding to the demand for hotel rooms. Yet, for all those travellers, India offers only around 110,000 hotel rooms; China has 10 times more, and the United States 40 times more. The New York metropolitan region alone has about as many hotel rooms as all of India.

India needs another 125,000 hotel rooms by 2010 to meet the surging demand, particularly in the upper and middle ranges making this partnership all the more significant.

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