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India's Country Club buys Chelsea Hotel
Indian hotel group Country Club has bought Dubai's Chelsea Hotel for Dh165 million and plans to open more hotels in the UAE as part of a drive to grow internationally.
- By Shakir Husain, Staff Reporter
- Published: 00:10 May 29, 2008
Dubai: Indian hotel group Country Club has bought Dubai's Chelsea Hotel for Dh165 million and plans to open more hotels in the UAE as part of a drive to grow internationally.
Country Club India Limited plans to use Dubai's positions as a key commercial hub for opening properties in several countries, including Singapore, Malaysia, Thailand, the UK, Poland and the US.
Asked about the choice of Dubai as the company's international headquarters, chairman and managing director Y. Rajeev Reddy said: "There is so much development happening here and we want to be part of it."
The acquisition provides the company a foothold in one of the fastest growing tourism destinations, Reddy told Gulf News.
"We are now looking for opportunities in Abu Dhabi and Fujairah. In the next four years we want to have at least four or five hotels in the UAE," he said.
The company hopes to attract tourists from Dubai to 200 properties it operates around India as tourist traffic gets stronger between the UAE and India.
The group mainly focuses on "reasonably-priced" three and four-star properties. Of all the properties it manages, Country Club owns 42 hotels and resorts.
Reddy said aside from operating hotels under franchise deals, the Bombay Stock Exchange-listed company wants to focus on leasing properties abroad with the option of buying them later.
Dubai is the second foreign location for Country Club after Kandy in Sri Lanka.
The Dh1 billion overseas expansion is part of Country Club's target of doubling its room inventory to 10,000 in four years.
It is looking to increase net profit to Dh258 million in four years compared with Dh56 million in 2007.
The company is also hoping for a fivefold increase in its revenues from last year's Dh271 million turnover.
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