easyHotel, Istithmar alliance to start budget hotels in India

Mumbai, Apr 28 (UNI) Europe's easyHotel and Istithmar Hotels of the United Arab Emirates today announced plans to set up eight budget hotels across India by 2009.

"Initially, the alliance is aiming to open an easyHotel in Mumbai, Chennai, New Delhi and Kolkata over the next two years," said chief executive officer of Istithmar Muneef Tarmoom. The investment scale in the country is about 100 million dollars.

With its no-frills, economical prices and low overheads, the easyHotel brand is perfectly suited for budget travellers, he said.

Istithmar is an investment house focusing on private equity, real estate and other alternative investments. It has 11 per cent stake in low-cost carrier SpiceJet.

easyHotel.com is a household name in Europe and is part of the London-based easyGroup which includes easyJet. A typical easyHotel provides 80 to 120 rooms in the city centre each measuring about 12 square metres in three categories: small, very small and tiny.

"We want to capitalise on the aviation boom in India and provide safe, clean rooms with private bathrooms," said easyGroup's founder Stelios Haji Ioannou. "But the hotels will not provide food or beverage as they are located in city centres where guests can walk up to a nearby restaurant." There are only two easyHotels at present one in London and the other in Basel (Switzerland). In London, the room rates start from 30 pounds.

The easyGroup includes easyJet, one of the most successful low-cost airlines in the world that Mr Stelios started in 1995 and in which he remains the largest single shareholder.

UNI SU ARB KN1604