Royal India inks bln agreement with Choice Hotel

New Delhi, Apr 12 (UNI) US-based Royal Indian Raj International Corporation (RIRIC) today said it has entered into a 4 billion dollar agreement with hospitality major Choice Hotels India to build 15,000 budget hotel rooms in India.

The construction works are set to commence within the next 12 months throughout the country, which would be completed in the next five years under the brands name of Comfort, Quality, Sleep Inn and Clarion.

''This transaction increases RIRIC's current proposed foreign direct investment in the real estate sector under the Integrated Township programme and in the Hospitality and Resort sector from four to over six billion dollars including its Royal Garden Villas and Resorts projects in Bangalore and Hyderabad,'' RIRIC Chairman and Chief Executive Officer Manoj C Benjamin told reporters here.

Mr Benjamin said, ''We have necessary approvals from Indian Government in bringing FDI.'' There is a huge demand in the Hotel and Hospitality sector in India in the two, three and four star categories. This partnership is forged to address these issues and to establish our presence in the hotel and hospitality sector in India, he added.

He said the money would be raised throuh the institutions and the private equity.

Choice Hotel India will develop, brand and manage the 15,000 rooms, to be built by RIRIC, in all the key destinations, added Mr enjamin.

During the first phase of the project, RIRIC will cover the cities of Bangalore, Hyderabad, Delhi, Chennai, Mumbai, Goa and Pune, followed by two-tier cities/towns in the second phase.

''We will develop, brand and manage the hotels only,'' Choice Hospitality India Chief Executive Officer Vilas Pawar said, adding that 1000-1200 rooms will be added in the National Capital Region region by 2010-12.

Choice Hotels International, US hospitality major, is one of the largest franchisors in the world with over 5,000 hotels worldwide. It is one of the fastest and finest growing hotel chains with 30 properties over 22 destinations in India with a presence in all metros and major business cities.

Royal Indian Raj International Corporation, (RIRIC), incorporated in Nevada, the US, in March 1999 with offices in Vancouver, London and Bangalore maintains a country-specific, five-sector heavy infrastructure orientation.

UNI