Aerens Gold Souk International Ltd (AGIL), a part of diversified business group Gold Souk, has entered into a franchise agreement with the US-based hospitality giant Wyndham Hotel Group to operate four hotels. As per the agreement AGIL will operate four-star deluxe category properties in Chennai, Kochi, Hisar and Ludhiana under the Ramada brand. These are currently under development with a planned combined investment of Rs.500 crore.
“We have tied-up with Wyndham for the Ramada brand and are currently developing four hotel properties in India. The total investment being made by AGIL will be Rs.500 crore which will be a mix of debt and internal accruals,” AGIL Chairman Surender Gupta told reporters.
Among the four hotels being developed at present by AGIL, the first one in Chennai will be operational in 2012 and remaining in 2014 and 2015.
He said the two partners are also in talks to extend their partnership to six more hotel properties, which are currently being developed by AGIL in Karnal, Ambala and Jagadhari (all in Haryana) and Doraha (in Punjab).
The negotiations for the six other hotels can include management contracts and also other labels out of Wyndham Group’s total of 14 brands, he added.
Commenting on the tie-up, Wyndham Hotel Group, President and Managing Director Asia Pacific Ken Greene said:”The tie-up with AGIL is a part of Wyndham’s expansion plans in India. We currently have 12 properties in the country and hope to double the same very soon.”
He said the group plans to introduce other popular brands such as TRYP, Whyndham, Days Inn, Dream and Howard Johnson here to add to the existing Ramada brand. Besides expanding the hospitality business, the Gold Souk group also plans to strengthen in other areas such as real estate, healthcare, education and retail.
“We will invest anywhere between Rs.2,000 crore to Rs.3,000 crore in the next five years in the businesses that we are present in to strengthen our presence,” Gupta said. While the group is eying acquisition in healthcare and education space, it is planning a big push in the real estate segment. It is currently in talks with a couple of hospitals to acquire stake and is soon likely to announce acquisition of an educational institution in Himachal Pradesh.
“In the real estate segment, we will develop new malls and set up a chain of India International Habitat Centres to offer quality accommodation and business services to NRI”s in India,” AGIL CEO Subhash Verma said.
The company also has intentions to make international foray with its projects.
