Singapore co to invest in Formulae 1 hotels in India

Singapore co to invest in Formulae 1 hotels in India
Hindu Business Line, March 5, 2009, Page 1

Our Bureau

The Government has allowed AAPC Singapore Pte Ltd to invest Rs 365.78 crore in an Indian company to construct, develop, own and manage low-budget Formulae 1 hotels here. AAPC is a hotel management company and Formulae 1 is an Accor brand.

Globally, Formulae 1 hotels are recognised as the international benchmark for budget hotels and offer modern functional rooms with basic comforts at affordable prices.

The Foreign Investment Promotion Board on Wednesday allowed AAPC Singapore to invest up to 100 per cent in an Indian company by subscribing to equity and fully convertible debentures to construct, develop, own and manage Formulae 1 hotels.

EARLIER MOU

While no details were available of the project cleared on Wednesday, in 2006, Emaar MGF and Accor announced the formation of a joint venture, Budget Hotels India Pvt Ltd, to bring Formulae 1 brand to the country.

In 2006, the new venture planned to invest $300 million over the next decade. Starting with the major metros, the joint venture company had planned to develop 50 hotels during the first five years of operations, with the remaining 50 to be developed in the second phase. The total development will add 10,000 hotel rooms, officials said. Emaar MGF is a partnership between global property developer Emaar Properties, the Dubai-based public joint venture stock company, and MGF Developments.