Saturday, May 5, 2007

Carlson to pick up 26% in JV with Unitech

US hospitality major Carlson is picking 26% stake in a fresh venture with the Unitech group for introducing the Regent hospitality brand in India. The joint venture would be developing the luxury hotel property located at Greater Noida with an estimated investment of Rs 450 crore. For Carlson, which has global operations under brands such as Radisson, Park Plaza, Park Inn, Country Inns & Suites apart from Regent, this would be the first such equity venture in the country.

Carlson would be picking 26% stake with a nominal investment of Rs 2.6 crore in the paid-up capital of the joint venture company — Elbrus Builders. This amount will be used for the working capital of the project. Currently, Unitech group companies hold 100% stake, including 34% equity holding through Unitech Hospitality, a wholly-owned subsidiary of the group’s listed arm, Unitech Ltd. Elbrus had in the past got an approval from the Noida Authority to develop a five-star hotel project in the city.

Read more in the Econoic Times article.

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