New Delhi : Indian hospitlity company, MBD Group, and Steigenberger Hotel Group, a German chain of hotels and resorts, have announced a joint venture (JV) to manage and franchise hotels under the brand ‘MBD Steigenberger’ for the India market. MBD Group will have a 51 per cent stake while Steigenberger Hotel Group will hold a 49 per cent stake in the joint venture company. The flagship hotel will be MBD Zephyr Bangalore, expected to open in three years' time in Whitefield area of Bengaluru boasting of 184 rooms and 118 service apartments.
The MBD Steigenberger group expects to touch annual revenue of Rs 2,000 crore in the next 15 years once its properties are open and fully functional. The management of this joint venture will be with MBD group. The group that already owns and manages five star hotel properties in Noida and Ludhiana will oversee business development, management and franchising of hotels while Steigenberger that already boasts of a portfolio of 116 hotels in 12 countries will help in international sales and marketing support, training and employing brand standards to Indian properties.
Elaborating the plans, MD of this joint venture Sonica Malhotra said that it takes 3-5 years to open a single hotel individually while with such a partnership she expects to open almost 10 such properties in first phase itself. "There is a potential to open 3 properties in Delhi NCR and Mumbai each along with one each in North Goa, Pune and Chennai.
We expect to complete formalities for these properties within next two years," she explained. Puneet Chhatwal, CEO of Steigenberger said he has noticed a sizeable jump in Indian travelers visiting his properties in Europe and feels his presence in India will further strengthen his standing among Indian tourists. "PM Modi's stops at our hotels during his recent visits to Belgium and Germany created a buzz for our brand among Indians. We set our agency in India recently saw a significant jump in number of Indian visitors at our Swiss properties. With our 20 flagship properties expected in India soon, our brand and properties in Europe too will get a major boost," he said. The JV will be competing with existing luxury properties of The Oberoi, Taj and Leela.