August 29, 2006 (LBO) – Aitken Spence Hotels Holdings together with an Indian partner plans to raise up to ten million dollars in India, to fund its hotel expansion into Kerala. The company has tied up a 50:50 joint venture deal with Floatels India Limited, to buy up a 15 acre plot of land on an island in the backwaters of Kerala.
Plans are to build a 50 room luxury resort with floating villas and spas and will be the first Aitken Spence hotel in India to be marketed under the ‘Heritance’ brand.
“The project will cost between 6-10 million dollars, with the funds raised in India through a 50:50 combination of debt to equity. The project should be ready by late 2007,” Malin Hapugoda, Managing Director of Aitken Spence Hotel Management told LBO.
Floatels India owns one other resort property Poovar Island Resort in southern Kerala, with about 70 rooms, which Spence is eyeing for management.
“Floatels India owns one other property in Kerala and this will also probably be upgraded and given to us,” Hapugoda said.
Aitken Spence is expanding into India, with several properties to be taken over for management by the hotel chain in New Delhi and Madurai.