September 5th, 2006
Hilton for 5-star hotel in Chennai
Empee Hotels Ltd, part of the Empee Group, has signed an agreement with hospitality major Hilton International to manage and operate their luxury hotel development, in Chennai. The property, promoted by Empee Hotels with an investment of Rs 184 crore, will come up at Ekkattuthangal, near Guindy, in December 2007, its chairman M P Purushothaman said in Chennai on October 5, shortly after signing the MoU.
The 253-room Hilton Chennai will boast of several fine dining restaurants, a destination bar, a swimming pool, a health club and a spa. Located 15 minutes from the Chennai airport, Hilton Chennai would also include four conference rooms, a ballroom and a business centre.
Wimberley Allison Tong & Goo (WATG), one of the leading global design teams behind some of the world’s most iconic hotels, has designed this landmark property. The hotel design will be a blend of Indo-Saracenic style of architecture with new generation state-of-the-art facilities, said Purushothaman.
He said, “Hilton is a fresh face in India, but in the last 18 months its presence nationally and regionally has grown quickly making it a priority partner for our group.”
Nisha Purushothaman, managing director, Empee Hotels Ltd, said, “With this tie-up we will take our hotel business to the next level and work with a global hotel chain that has a modern array of upscale properties. With the development of the new property, the Hilton brand will have a strong presence in Chennai and will be a preferred choice for judicious travelers to this region.”ÂÂ
The president for Hilton International Middle East and Asia Pacific, Koos Klein, said, “Chennai’s hotel industry is shaping up to be one of the most dynamic in India, with occupancy levels at the top end of the market posting very strong gains.”
The equity for this hotel will come from the Empee Group while Hilton will take care of the management.
The Hilton Group is looking at five hotels in India as it considers the country to be a major market along with China in the years to come. India, in fact, has a brighter future than China, Koos felt. “As the powerhouse behind India’s automotive industry and with its growing IT sector, the outlook for this market is very positive. We are delighted to partner the Empee Group, a company that has a comprehensive knowledge of the hotel industry gained through first-hand experience in operating hotels and with M P Purushothaman’s active role with the Federation of Hotel & Restaurant Association of India.”ÂÂ
“This is a strong addition to our eight properties already established in India and the three other properties now under development,” he added.
Chennai accounts for 40 per cent of India’s automotive industry with companies such as Hyundai, Ford, Mitsubishi, Ashok Leyland and Royal Enfield having manufacturing facilities within the region. In August, BMW announced its intention to open a manufacturing plant in the city in late 2006. Most recently, the city has transformed into a commercial centre hosting a large number of IT companies and outsourcing businesses seeking alternative hubs to Hyderabad and Bangalore.
The conference, conventions and events market would rise. The city is well positioned to capitalise on an influx of business tourism, with the international airport serving more than 15 international carriers, said Purushothaman.
The Empee Group is a well-diversified business conglomerate with interests in business related to hotels, liquor, sugar, power, packaging, transport, construction and exports. The group came into existence 40 years ago and is today one of the leading business houses in south India.
Empee Hotels, part of the Empee Group, would promote its first five star hotel in Chennai. The group owns two other hotels at prime locations in Chennai. Purushothaman, currently the president of Federation of Hotels and Restaurants Association of India (FHRAI), is a pioneer in the hospitality industry and has been elected twice as the president of FHRAI.
In April 2004, Hilton International signed a strategic alliance with EIH Ltd, giving the company instant presence in eight locations across India; seven under the Trident Hilton name and one under the Hilton Towers, Mumbai banner. EIH Ltd manages all hotels while Hilton is responsible for international marketing, promotion and reservations through the Hilton global network. The hotels include Trident-Hiltons Gurgaon, Agra, Jaipur, Udaipur, Bhubaneshwar, Chennai, Cochin and Hilton Towers in Mumbai. Trident Hilton Mumbai, a 500-room new property in north Mumbai is scheduled to be built in 2007.
In addition, to date Hilton has signed management contracts for three new properties - a 300-room new generation Hilton hotel and a 250-room Hilton residences in Bangalore, also a l00-villa holistic lifestyle retreat in Shillim, located in the Western Ghats.