Radisson, which has two operational hotels in the country, will use the new company in honing the skills of its employees and others in the field, Radisson Hotels International Inc senior vice-president (development) James W Olson said on Sunday. The new company will be known as RHW Management Services India. Radisson is holding talks with a number of domestic parties in the field, and will soon finalise the extent of investment and the equity pattern.

Olson said Radisson was in favour of holding a minority stake and the domestic partner or a group of partners would hold the majority stake. According to industry sources, Radisson is insisting on a 26:74 equity pattern, but might settle for a 50:50 joint venture.

Olson refused to commit himself to the possibility of the new company setting up hotelsusing radisson's expertise and brand name, saying "this depends on the Indian partners and any such ventures would be on their own account". Olson said that in a vast country like India, which was now rapidly moving towards a free economy, the hospitality industry would play a major role and international businessmen would need high-quality services from a reliable, probably known brand.

"Radisson has the name and expertise to meet the rising expectations of the tourists and businessmen visiting India, and we have taken it as a challenge to meet these demands by floating a new company," he said.

Under the new company, a training centre based on the `Radisson philosophy' would be set up to cater to good management of hotels, Olson said.

"Though we haven't finalised the location for the centre, we initially plan to use our hotel in Delhi," he said.

The centre will have experts from Radisson Worldwide to impart training to the entrants and they will also be trained in some of Radisson's establishmentsoverseas.

Olson said the proposed centre would substantially back up his company's future ventures to render world-class services.

"The investment climate here is good and with the level of foreign investment going up, we expect the hotel and tourism industry to do well," he added.

Radisson, which has already commissioned its hotels in Delhi and Raichak, near calcutta, will open a third one in Chennai by the year-end, Olson said.

The five-star at St Thomas Mount, Chennai, which is on a franchise basis and technical assistance from RHW, will have 102 rooms equipped with computer, fax and e-mail communication and an informal polo bar and tea/coffee lounge in the lobby.

Radisson will also be bringing in its `regent' brand of hotels and `country inns and suites' of the parent company Carlson Hotels Worldwide to India.Under a franchise and joint-venture management agreement, Radisson will set up a hotel in Gurgaon with 117 rooms.

The group has set year 2000 as the deadline for the hotel to be madeoperational and has already acquired land, with construction expected to begin from December this year, sources said.

Two other units will be set up in Jaipur and Jalandhar, with room capacities of 216 and 102 respectively, under franchise and technical assistance coming from RHW, they said.

Though the group has set a target of 2001 to make the Jaipur unit operational, sources said it was likely to be delayed as required finance had not yet been tied up.

Radisson's expansion programme in India was part of the company's efforts to reach a total of 50 locations in Asia/Pacific by the turn of the century, Olson said.