The DLF-Hilton joint venture, established between India’s largest real estate firm and the world’s leading hotel chain, is currently facing setbacks due to regulatory delays. The inaugural project, The Hilton Garden Inn in New Delhi, was originally set to open in December; however, local planning consents and license approvals have resulted in this delay. Nonetheless, according to a senior official, Hilton Hotels Corporation remains steadfastly committed to its collaboration with DLF in India.
Faith Thoms, Director of Public Relations and Communication for Asia Pacific at Hilton Hotels stated, “The Hilton Garden Inn Saket project was delayed on various regulatory grounds. We are looking forward to opening the property next year. Hilton Hotels Corporation continues to be committed to its relationship with DLF in India.”
In its clarification released to stock exchanges on Tuesday, DLF also emphasized, “For the benefit of the market in general, it is clarified that DLF’s JV with Hilton is on a firm footing and all plans for development of hotels stand as originally envisaged.”
Thoms elaborated that their partnership has seen positive evolution, highlighting an impressive total of 17 hotel projects presently under development. According to Thoms, the initial hotel under this alliance, the Hilton Garden Inn Saket in Delhi, is earmarked for an opening in 2009.
When discussing the progress of the joint venture, Thoms noted, “Other examples of our progress include ongoing development of the Hilton and the Hilton Residences in Kolkata, which will yield a total of 550 rooms, and multiple projects in Dwarka, including the Hilton, Homewood Suites by Hilton, and the Hilton Garden Inn, comprising over 800 rooms.”
However, DLF also conveyed caution regarding the hotel business build-out, indicating that this phase could experience a postponement of 12-18 months from the anticipated date due to current liquidity constraints faced by the company.