Education and hospitality company MBD Group and Germany's Steigenberger Hotel Group today announced formation of a joint venture...
Education and hospitality company MBD Group and Germany’s Steigenberger Hotel Group today announced formation of a joint venture to manage and franchise hotels under the ‘MBD Steigenberger’ brand in India.
MBD will have 51 per cent stake in the JV, while Steigenberger will hold the remaining 49 per cent, according to a release issued here.
The JV is targeting to open at least 20 hotels in India over the next 15 years with projected annual revenue of hotels under management or franchise of nearly Rs 2,000 crore.
MBD Steigenberger, in-line with the international positioning of the Steigenberger brand, will be positioned to target the luxury segment in India.
The flagship hotel under the JV will be the MBD Zephyr Bangalore, an MBD Steigenberger hotel, offering 184 rooms and 118 serviced apartments.
“We are extremely proud to announce our association with Steigenberger Hotel Group. The association will ensure that German excellence joins hands with the warmth of Indian hospitality providing the next level experience to our guests across the country,” said Sonica Malhotra, Managing Director of the Joint venture and Joint Managing Director of the MBD Group.
“We will be focusing on key cities in the country, including Delhi, Mumbai, Chennai, Hyderabad, Goa, Kolkata, Pune, Indore, and other cities where we want to come up with luxury hotels,” Malhotra said.
Management of the joint venture company would be in the hands of the MBD Group looking after the India operations of the brand, including business development, management and franchising of hotels, marketing, pre-opening and post-opening assistance, among others, while Steigenberger will provide international sales and marketing support, training and brand standards.
Steigenberger Hotel Group CEO Puneet Chhatwal said, “This is an important milestone in our history of international growth. As a company with German roots, Steigenberger Hotel Group enjoys a good reputation worldwide. We are very excited to bring our hospitality to the Indian market.”