The Hindu Business Line : Jones Lang LaSalle entering India in Q3

New Delhi June 15 Jones Lang LaSalle Hotels is all set to enter the Indian market to offer its hotel investment services, in a 50:50 joint venture with the real estate services and money management firm Jones Lang LaSalle Meghraj.

Jones Lang LaSalle Hotels provides services such as investment sales, acquisition services, valuations, financing, asset management, development services to global hotel chains and investors.

"Jones Lang LaSalle Hotels will start its India operations in the third quarter of the current year. It has strong relationships with global hotel operators, many of which are looking to enter or expand footprint in the Indian market," Mr Vincent Lottefier, CEO of real estate service provider Jones Lang LaSalle Meghraj, said.

He said the real estate entity would bring its existing business ties with various Indian developers to the joint venture, with a view to link hotel operators with Indian realty players.

It may be recalled that Jones Lang LaSalle Inc, and privately-held real estate services company in India, formerly Trammell Crow Meghraj, had announced an agreement to merge India operations earlier this week. Jones Lang LaSalle Meghraj is the new entity formed out of the merger.

Jones Lang LaSalle Hotels is already present in the Japan, Singapore, Australia and China.

"The next natural move for the company is to move into India, particularly in the backdrop of the growing maturity of hospitality sector. Also, its an exciting time as major developers in the country are eyeing the hospitality space with interest," he said.

The hotel industry in India has sustained its growth momentum. According to a latest report by Jones Lang LaSalle, the room demand grew by 5.3 per cent in 2006 as opposed to supply, which grew by 4.9 per cent. Thus the occupancy rates improved from 72.1 per cent to 72.4 per cent during the same period. Bullish on the hospitality sector in the country, a host of real estate companies have charted out plans to foray into the sector.

Last year, Hilton Hotels Corporation announced that it would create a joint venture company with DLF to develop and own 75 hotels and service apartments over the next seven years.

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