PARIS—One of the world’s largest hotel companies is setting its sights on India as the next frontier for development.
Louvre Hotels Group, which announced Thursday the merger of Golden Tulip Hospitality into its portfolio, expects to raise US$100 million for growth in India, according to Matthieu Evrard, international development senior director of Louvre Hotels Group. Golden Tulip previously operated with Louvre under a strategic alliance.
The new company is owned by Stareco, a subsidiary of Starwood Capital. It manages seven brands ranging from 1-star to 5-star: Première Classe, Campanile, Kyriad, Kyriad Prestige, Tulip Inn, Golden Tulip and Royal Tulip.
The company named India as its priority for 2011, with a plan to open 12 hotels per year during the next five years. There are currently six Louvre hotels in the country.
Evrard told HotelNewsNow.com that India is its prime target because it has high potential owing to its population, economy and dynamic emerging tourism sector.
“There is huge demand-supply gap in the hospitality market, with special lack of branded and/or quality rooms supply, which Louvre Hotels Group could strongly benefit from,” he said. “In particular, there are major opportunities in the economic segment because of low competition.”
Louvre will focus on Première Classe, Campanile, Tulip Inn and Golden Tulip in the country, Evrard said. Growth will come from acquisitions and new construction.
In regard to the company’s greater goals of adding 80 hotels in 2011 and opening an average of 100 hotels per year during the next five years, Evrard said: “Our acquisition strategy relies on the assessment of the potential of targeted markets and on specific opportunities, rather than on a precise goal for the mix of franchising, management and ownership.”
Louvre generally relies on a partnership strategy for international growth, he said.