This story first appeared in DNA Money edition on Monday, August 13, 2012.
Hyatt Hotels Corporation has emerged as a frontrunner for management takeover of Ista Hotels, promoted by IHHR Hospitality that runs the award-winning spa property Ananda in the Himalayas.
The international hotel chain is likely to rebrand Ista Hotels as simply ‘Hyatt’ with no prefix or suffix, sources said.
A Hyatt spokesperson, in an email response, said, “Currently no confirmed deal has been signed between Ista and Hyatt.”
With this development, Ista, a homegrown brand that IHHR created six years ago to enter the hospitality market, may cease to exist.
Sources said IHHR was looking for a tie-up with a foreign brand as global slowdown and increased competition from global chains were hurting business.
IHHR entered the luxury business hotels segment by opening its first Ista hotel in 2006 in Bangalore with 143 guestrooms and suites, followed by Hyderabad (165 guestrooms), Amristar (248), Pune (221) and Ahmedabad (169).
The portfolio currently comprises five hotels with a total of 946 guestrooms and suites.
Ashok Khanna, managing director, IHHR, said, “We have been exploring alliances for a while to help us compete with international chains that have the advantage of a global presence. However, nothing has been decided yet. We will make an announcement when the decision is made.”
The development could pave the way for similar deals as local brands are finding it difficult to fight global brands in a depressed economic scenario.
“The approach would largely be adopted by home-grown brands with sought-after hotels in prominent cities to take advantage of the global footprint and loyal customer base enjoyed by the international hospitality chains,” said a top official from a leading international hospitality chain.
The international hotels approached by the IHHR management include Marriott International and Starwood Hotels & Resorts.
The international hotel chain is likely to rebrand Ista Hotels as simply ‘Hyatt’ with no prefix or suffix, sources said.
A Hyatt spokesperson, in an email response, said, “Currently no confirmed deal has been signed between Ista and Hyatt.”
With this development, Ista, a homegrown brand that IHHR created six years ago to enter the hospitality market, may cease to exist.
Sources said IHHR was looking for a tie-up with a foreign brand as global slowdown and increased competition from global chains were hurting business.
IHHR entered the luxury business hotels segment by opening its first Ista hotel in 2006 in Bangalore with 143 guestrooms and suites, followed by Hyderabad (165 guestrooms), Amristar (248), Pune (221) and Ahmedabad (169).
The portfolio currently comprises five hotels with a total of 946 guestrooms and suites.
Ashok Khanna, managing director, IHHR, said, “We have been exploring alliances for a while to help us compete with international chains that have the advantage of a global presence. However, nothing has been decided yet. We will make an announcement when the decision is made.”
The development could pave the way for similar deals as local brands are finding it difficult to fight global brands in a depressed economic scenario.
“The approach would largely be adopted by home-grown brands with sought-after hotels in prominent cities to take advantage of the global footprint and loyal customer base enjoyed by the international hospitality chains,” said a top official from a leading international hospitality chain.
The international hotels approached by the IHHR management include Marriott International and Starwood Hotels & Resorts.
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