The Rakeen India Operations Company (Rakindo), a joint venture company with Vishwateja Projects Private Limited, India, has signed a Memorandum of Understanding (MoU) with Lotus Hotel Investment Fund (Lotus).

As per the MoU the companies will jointly develop business hotel properties in high growth centres in India, said an official spokesman.

Lotus is a private equity fund which is in the process of being launched and will invest in business hotels in Asia.

The MoU was signed by CEO and founder of Lotus Hotel Investment Fund Arun Amarsi and director of Rakindo Kishore Kothapalli during a ceremony held at the Al Hamra Fort Hotel in Ras Al Khaimah.

According to the MoU, Lotus will form a joint venture company to invest in several three and four-star hotel properties across Asia in general and India in particular, with six major cities in South India being the initial focus.

'This joint venture will generate substantial value to the partnership projects as it will combine the financial resources and property development expertise of Rakindo with the financial strength, and hotel development and management capabilities of Lotus. This partnership will jointly develop world-class business hotels in key cities across India, at a time when the country is witnessing unprecedented economic boom,' said chariman of the board of directors of Rakindo and CEO of Rakia Dr Khater Massaad.

'We are pleased to partner with a highly reputed company like Rakindo that have an excellent track record of being involved in several major real estate projects in India. Lotus and Rakindo have a common goal of leveraging our mutual strengths to capitalise on exciting business opportunities in the rapidly growing Indian market. We believe this alliance will efficiently address the rising demand for high quality hotels in India,' said Amarsi.

According to the latest global economic watch, the demand for hotel rooms is soaring in India, with its growing status as a premier holiday and business destination in Asia.

Moreover, the sharp increase in domestic travel in India is adding to the demand for hotel rooms. Yet, for all those travellers, India offers only around 110,000 hotel rooms; China has 10 times more, and the US 40 times more. The New York metropolitan region alone has about as many hotel rooms as all of India.

India needs another 125,000 hotel rooms by 2010 to meet the surging demand, particularly in the upper and middle ranges making this partnership all the more significant. - TradeArabia News Service