India Broadband Forum

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Real estate giants Emaar-MGF have announced that they are planning to setup a chain of 100 budget hotels in cities around the country.

The company aims to have a presence in all major cities in India and they are partnering with Accor, the global leader in budget hotels.

Interestingly, Indian Railways has also announced a similar project to setup Rail Ratna branded budget hotels around the country.

Emaar-MGF would be investing around $300 million in setting up these hotels over the next 10 years. The aim is to provide rooms at an average room rent of $20-$40 per day.

Emaar MGF’s managing director Shravan Gupta spoke about their plans: “Emaar MGF will announce similar strategic tie-ups in 2007 to float hotel chains in luxury and business segments. We have over Rs 5,000 crore worth of land bank in India. Emaar MGF may also tap the capital markets with an IPO by offloading about 5-10% of its equity next year.”