Country Development is a joint venture between Jatia's Chanakya Hotels, and Country Inns & Suites of Carlson Inc, a group company of Carlson Hospitality Worldwide of the US. Jatia is also one of the promoters of Asian Hotels which owns the Hyatt Regency five-star deluxe hotel in the Capital.

Country Development had sought FIPB approval for divesting a 26 per cent stake amounting to $26,000 to receive the franchise rights for the `Country Inns' brands of hotels in India. Besides the franchise rights, the foreign company will provide technology for setting up such franchised hotels, provide marketing support, help in setting up and/or offering reservations systems and, on a case-to-case basis, to manage the hotels.

The FIPB has also approved payment of$40,000 as development fee at the time of obtaining the master franchise and an equal amount as initial franchise fee for the first four hotels. The foreign company has also been allowed to collect $18,000 for each additional hotel that is franchised provided the Indian company is unable to collect in excess of $ 22,000 per hotel.

Country Inns & Suites has also been allowed to collect $19,675 as annual outflow for each hotel based on estimated occupancy and tariffs and on the basis of an average hotel of 80 rooms. Beside this amount, the foreign company will also receive $5,500 as annual reservation fee per hotel.

Country Development, which was formed in January this year, will, besides managing the hotels being developed by Chanakya Hotels, be building the Country Inns & Suites brand in India. The Country Inns brands to be introduced in the country include `Country Inns & Suites by Carlson', `Country Suites by Carlson', `Country Hotel by Carlson' and `Country Inns by Carlson'.

The company has plans toset up eight three-star hotels at Puri, Mussourie, Calcutta, Lonavla, Gurgaon and Katra besides two properties in South India within the next seven years.

Carslon Hospitality Worldwide is part of the $20 billion Carlson Companies Inc, one of the largest privately-held companies in the US. It owns brands like Radisson, Regent International Hotels, Country Inns & Suites, TGI Fridays and Italiannis.