Berggruen Hotels is the hotel division of Berggruen Holdings, a New York-based private investment company. So far, it has invested Rs 1.5 billion and acquired land in about 18 cities. It had slowed down its land acquisition spree some time ago, because of the shooting real estate prices. In cities like Mumbai, Delhi, Chennai, Jaipur and Pune, the prices had shot up as high as 60%, forcing Berggruen and other hospitality companies to slow down.
Partha Chatterjee, whole-time director and chief marketing officer, Berggruen Hotels, had reportedly told DNA Money that the entire quantum of debt will be drawn up according to a need-based blueprint to fund about 38 properties in India till 2012 and will include the cost of land and construction.
Berggruen will fund its overseas ventures according to a need-based plan, like it is doing in India, since there is no point in keeping idle money, Chatterjee said. The company is also looking at greenfield projects overseeas — in Middle East & North Africa, South East Asia and South Asia.
The first Berggruen property in India is likely to start operating from February next year in Thiruvananthapuram (Trivandrum) as the company had zeroed in on land there earlier.
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