Also Commits Funding to a Real Estate Investment Fund Dedicated to Investing in IndiaARLINGTON, Va., February 21, 2008—Interstate Hotels & Resorts (NYSE: IHR), a leading hotel real estate investor and the nation’s largest independent operator of full- and select-service hotels, today announced that it has formed a 50-50 joint venture partnership with JHM Hotels to operate and selectively invest in hotels in India.
(H.P. Rama, founder and CEO, JHM Hotels, photo top right)
JHM Hotels is one of the nation’s largest independent developers and owners of hotels. The joint venture, named JHM Interstate Hotels India, will serve as Interstate’s platform for all hospitality-related activities in India, primarily focused on securing management agreements on existing and to-be-built hotels. The joint venture is establishing an office in New Delhi, India.
JHM Hotels is one of the nation’s largest independent developers and owners of hotels. The joint venture, named JHM Interstate Hotels India, will serve as Interstate’s platform for all hospitality-related activities in India, primarily focused on securing management agreements on existing and to-be-built hotels. The joint venture is establishing an office in New Delhi, India.
“The formation of this new management joint venture establishes a solid platform for our entry into India’s fast-growing lodging market,” said Thomas F. Hewitt, Interstate’s chief executive officer. “By combining this platform with our investment in a hotel real estate investment fund we have a robust pipeline of management contracts and a strong foundation for future expansion. In addition, the joint venture is actively sourcing other management opportunities throughout key markets in India.
“With Interstate’s international experience, depth of resources and strong relationships with all the major hotel brands, we believe our combined strength, knowledge and expertise will give us a competitive advantage in arguably the most underserved hotel market in the world,” said H. P. Rama, (photo top right) founder and chief executive officer of JHM Hotels.
In addition to the management platform, both Interstate and JHM have committed to invest in Duet India Hotels Limited, a U.K.-based, real estate investment fund dedicated solely to the investment of hotels in India. The fund has raised approximately $175 million in equity with anticipated total equity contributions in excess of $200 million. The fund’s mission is to develop approximately 25 hotels in India in the three- and four-star categories, targeted at business travelers and located in secondary and tertiary cities, as well as satellite townships outside major urban centers.
The fund is expected to invest in up to $800 million of total project volume over the next five years. Interstate and JHM will invest equal portions of a $12.5 million total investment to acquire an interest in Duet India Hotels Limited, as well as an interest in the fund’s asset manager, Duet India Hotels Asset Management Ltd. The fund has committed to providing JHM Interstate Hotels India the first opportunity to manage the hotels in which the fund invests.
For further information about the fund, contact Dilip Puri at dilip.puri@duetindiahotels.com.
Contacts:
Julie Tullbane
Daly Gray Public Relations
T 703-435-6293
F 703-435-6297
julie@dalygray.com
Carrie McIntyre
SVP, Treasurer
(703) 387-3320
Daly Gray Public Relations
T 703-435-6293
F 703-435-6297
julie@dalygray.com
Carrie McIntyre
SVP, Treasurer
(703) 387-3320
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