Berggruen Hotels will be spending $100 million on building properties in Turkey, Egypt, Morocco and the United Arab Emirates, said Atul Lall, chief operating officer, international division Berggruen Hospitality.
Backed by New York based Berggruen Holdings, the hotel group, which launched a chain of boutique hotels in India this year, said it would add 25 hotels and resorts, or at least 1,000 rooms, in these countries from 2008.
The company will run budget and mid-market hotels, resorts and serviced apartments under the brand Keys.
In Turkey Berggruen already has offices and is a major player in luxury villas and real estate. In 2010 two hotels on the European side of Istanbul and one hotel on the Asian side are planned, each consisting of 150 rooms. In Izmir one hotel also of 150 rooms will be built by 2010, and in Antalya one hotel with 250 rooms will be finished by 2011 while in Ankara a 170 roomed hotel is planned. There are also developments in Bursa and Bodrum planned.
The cost per hotel is expected to be around $4-5million, excluding the cost of land. Revenue expectations average $3million per 100 room hotel per year.
Berggruen Hotels’ corporate office are in Mumbai, India. It plans to grow its business through fully owned, land lease, shell lease, joint venture, joint development and management contracts.
Berggruen’s investments will focus on the budget and mid-market segments, and will be targeting travellers seeking efficient, secure, informal, hygienic, value for money accommodation in the key business and leisure destinations around the country. The group is also planning to have at least thirty eight hotels in operation by 2012 in India.
The Keys brand of hotels will be contemporary business hotels with a fully equipped business centre and meeting rooms. Services will include a business concierge, in-room internet access and a direct dialing facility. Residents will also have a full fledged gymnasium, a “Resto bar” where guests can access all sporting events, 24 hour vending area and an all day informal restaurant.
The rooms will have WiFi enabled rooms with refrigerator, tea and coffee maker, in-room ironing facility, writing table with ergonomic chair and LCD televisions. These also come with a video telephone, a feature the company has noted is favoured particularly by travelling alone women executives, for extra security.
All Keys resorts will have a touch of local ethnic flavour and include an Ayurveda spa, swimming pool, entertainments area and conference space.
Keys apartments will be designed for extended stays.