Starwood, ITC tie-up for luxury hotels

New Delhi, Apr 12 (UNI) American hospitality major Starwood Hotels and Resorts today entered into a franchise agreement with the ITC-Welcome Group for launching its premium brand of hotels 'Luxury Collection' in India.

Under the 10-year exclusive tie-up, Starwood will upgrade and rebrand ITC's seven hotels. These include Maurya Sheraton (Delhi), Maratha (Mumbai), Sonar (Kolkata), Grand Central (Mumbai), Windsor (Bangalore), Kakatiya (Hyderabad) and Mughal (Agra).

ITC Chairman Y C Deveshwar told a news conference here that the company has moved a proposal in this regard before the FIPB and is expecting its decision by May 1.

These properties, however, will retain the Sheraton connection, which was initiated on Jan 1, 1979.

''India is the fastest growing Asia Pacific market for the international visitor. With this pact, we hope to serve the growing number of visitors even better,'' said Starwood Hotels and Resorts President (Asia Pacific) Miguel Ko.

The Luxury Collection is the third biggest chain of hotels with 60 hotels across the globe.

''We will collaborate and compete with the Starwood Hotels and Resorts. The aim is that both the partners should benefit from this association. But there will be no competition in certain command areas,'' Mr Deveshwar added.

Speaking about the tariffs, he said the rates would be in accordance to the room size, the amenities provided and the season.

''An increase of 40-50 dollars per night per day can be expected from the present rates,'' Mr S S H Rehman, Executive Director, ITC Ltd added.

Declining to comment on investments involved, officials of the two sides said there would be exchange of systems, processes and people around the world to give the visitor in India a true global feel.

The ITC-Welcome Group today has 75 properties with 5,500 rooms.

These include seven ITC hotels, seven Welcomegroup hotels, 18 Fortune hotels and 43 others under the WelcomeHeritage banner.

In addition, 27 properties with 3,000 rooms are under development.

UNI