Easy Group to build budget hotels in India

Mumbai, Apr 4: Istithmar Hotels, part of Dubai World holdings, UAE government owned investment company has announced investments of more than USD 400 billion with Britian based Easy Group to build a chain of EasyHotel's in 17 countries including India.

Announcing the development here today, Joe Sita, Chief Executive Officer of the Istithmar Hotels said,''this was done in an attempt to tap the growing demand of budget hotel accomodations around the world. India is a growing and significant market. We are happy to be working with Easy Group to expand the EasyHotel brand into India.'' Sita said,''Last month we broke ground on the first of our EasyHotel properties in Dubai and we are now accelerating our development plans across the region.'' India will be an important market for EasyHotel properties, with six hotels currently planned over the next five years in Mumbai, New Delhi, Chennai, Kolkatta and Bangalore respectively, he added.

Declining to reveal the India specific figure of investment by the Group, Sita stressed that a sizeable portion of the USD 400 billion will be invested in India as a result of its booming economy and growth opportunities in the hospitality sectors.

''Over the past 10 months, we have invested more than USD 2.5 million in researching, designing and refining the core room concept. The core concept is to deliver an absolutely first class sleep and shower experience at an affordable price,'' said Sita.

On the occassion, Sir, Stellos Haji-Ioannou, CEO of Easy Group, knwon for his low cost airliners, car rentals and cruises globally, said," This would be Easy Groups first major foray and investment in the Indian economy on a big scale. Easy Group will target Tier-II and III cities after it establishes foothold in the metros and Tier-I cities with its EasyHotel brand", said Ioannou.

He said the EasyHotels in India will be priced according to the market and region it is located due to the varying costs of properties across India. " Our competitors, The Taj is coming with the 'Ginger'brand of budget hotels, but they are mainly concentrating on highways and outskirts. But, we have no such plans", he stressed.

Assuring of quality service and quality stay at any of the EasyHotels, Ioannou said,"our main concentration will be on providing a clean, safe, consistently decorated, private room and a private bathroom for customers".

Refusing to elaborate further about its India plans, he said EasyHotel brand is under negotiations with several key players in India. EasyHotel would like to mark its begining in India from either Mumbai or New Delhi before expanding its operations across the country, he said.

Formed by the UAE government, Istithmar Hotels is a part of the Dubai World Holdings and has interests in real estate business to acquire and manage a distinguished and diversified portfolio of properties in commercial property, hotels and resorts, the leisure sector and in retail.

While, EasyGroup is the private investment vehicle of Sir, Stellos Haji-Ioannou, and EasyHotel is one of the 17 EasyGroup businesses. The Group profits either by selling shares in the businesses or by licensing or franchising the brand to reputable partners. The Easy brand currently operates 17 industries in travel, leisure, telecoms and personal finance.

UNI