Source : Business Times - 13 Sep 2008
RENDEZVOUS Hotels & Resorts International (RHI), a subsidiary of The Straits Trading Company, has entered into a joint venture (JV) with Chennai-based developer XS Real Properties (XS Real).
RHI, which operates the iconic Rendezvous Hotel at Bras Basah Road, said the JV company called Rendezvous India Hospitality Pte Ltd will manage hotels and resorts in India.
Recent Indian government estimates put demand for additional hotel rooms to be about 150,000 rooms in areas such as Mumbai, Delhi and Chennai.
RHI will own 51 per cent of the JV company and will open and operate hotels under its management.
XS Real is expected to introduce new business opportunities to the JV company.
On its latest venture, RHI chief executive Alan Featherby said: ‘This complements our recently announced move into the Middle East and supports our already strong growth in other regional areas, particularly China, South-east Asia and Australia.’
XS Real vice-chairman SG Prabhakaran added that with an acute shortage of hotel rooms in India, across the mid and luxury segment, the JV company hopes to bring in two brands - Rendezvous and Marque - to address the needs of this segment.
Mr Prabhakaran added that the entry into this field will see XS Real move up the value chain and use its expertise in building and construction for asset management.
He added: ‘Stand-alone hotels which are not able to retain their market share for the lack of a brand, international expertise, network would be the ideal partners to enter management contracts’.
Straits Trading was taken over by the Tecity group of companies earlier this year. Chew Gek Khim, who heads Tecity, is the granddaughter of the late Tan Chin Tuan, who was chairman of Straits Trading from 1965 to 1992. When she assumed the reins of the company, she said she would work with Straits Trading’s management on a strategic review to ‘take the company to new heights’.
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