Berggruen Hotels to expand operations in MoroccoSeptember 10th, 2008 - 7:59 pm ICT by IANS
New Delhi, Sep 10 (IANS) Berggruen Hotels, operator of Keys budget hotel chain in India, has signed a joint venture agreement with Filacom Pvt Ltd in Morocco to set up three and four-star hotels in that country. This is Berggruen’s first international joint venture to develop midmarket and upscale hotels across emerging economies.
“I believe his partnership will add momentum to our expansion plans in this region. Morocco is a strong market and its strategic proximity to Europe gives the business long-term sustenance power,” Berggruen Hotels managing director Sanjay Sethi said.
“The company is also looking to develop budget hotels in Casablanca, Rabat, Fez, Agadir, Mekens and Mohammedia,” said Atul Lall, chief operating officer, international division of Berggruen Hotels.
He added that the company would invest $50 million in Morocco in the next two years. In the second phase, an additional $25 million would be invested as the company will increase its presence in other cities and holiday destinations, Lall said.
“These will be primarily greenfield projects but the company is also open to acquiring existing hotels and entering into management contracts,” he said.
The venture will be operated through two companies - a property company in which Berggruen Hotels will have 51 percent stake and an operating company in which it will have 75 percent stake.