Aitken Spence India strategy to dwarf Sri Lanka

Feb 22, 2008 (LBO) – Sri Lanka's Aitken Spence Hotels is on track to control around 1,400 rooms in India within two years, making them overtake domestic operations unless new hotels are built in the island, an official said. The firm has bagged eight management deals in India, some with equity participation, which will see its premium 'Heritance' brand being exported to at least two locations.

Aitken Spence had struck management deals with four hotels around Delhi, some of which are still being built. Their sizes range from 100 to 240 rooms.

"The rates in India are unbelievable say around 450 dollars for a 5-star," says Aitken Spence Hotels Management chief Malin Hapugoda, who is aggressively driving the company's expansion into India and the Middle East.

Earlier this month Aitken Spence signed up four Omani hotels for management.

He says the Spence managed hotels which are 4-star in Delhi- would earn about 200-250 US dollars a room on average throughout the year. But its other 5-star classified properties are expected to be priced higher.

In addition to the Delhi area, the firm has signed up a resort each in Madurai, Trivandrum, Cochin and Andaman Islands.

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