Goldman to launch Four Seasons in B’lore

Bill Gates & Saudi Prince Alwaleed bin Talal-Owned Hotel Has Aggressive Plans For India

Boby Kurian & Lijee Philip BANGALORE/MUMBAI

GOLDMAN Sachs is believed to be investing around $80 million (over Rs 320 crore) in a joint venture with Dubai developer ETA to launch luxury Four Seasons hotel in Bangalore. Microsoft founder Bill Gates and Saudi prince Alwaleed bin Talal-owned Four Seasons has unveiled aggressive expansion plans in India, even as fears of a slowdown in hospitality sector are being raised.
    Goldman Sachs is expected to hold a majority stake—up to 76%, but this could not be confirmed—in the JV estimated at about $150 million, including debt. The deal marks one of the biggest PE plays in a single hospitality project in the country.
    Sources said Goldman Sachs will be financing bulk of the project through a combination of equity and debt. ETA owns 4 acre adjacent to Mekhri circle, a mid-point between the city and the recently-opened greenfield airport. Further details of the project could not be ascertained. A formal announcement on the JV is expected soon.
    Last year, Citigroup said it was investing in a joint development with Nitesh Estates for India's first Ritz Carlton property in Bangalore, expected to be completed by June 2010, signaling PE interest in highend luxury hospitality segment.
    Four Seasons spokesperson said: "We are looking at various properties across India, and Bangalore is one of them. Currently, we can't say much as no official details have been announced." The Canadian hospitality giant, which manages 74 luxury hotels across the globe, agreed early this year to be taken private for $3.8 million by Bill Gates, prince Alwaleed bin Talal and Four Seasons chairman & CEO Isadore Sharp. In India, Four Seasons has identified six locations in metros and tier-I cities. It is looking at a mix of management contracts and equity investments. "We are very optimistic about the Indian market having a sustained period of growth. We are planning with a long-term vision," Mr Sharp had said ET.
    Goldman's interest in the project comes even as inflationary pressures and economic slowdown are believed to be impacting India's hospitality sector in recent times. But, sources said, the luxury segment may remain insulated for the time being at least.
    Four Seasons recently opened the 202-room hotel in South Mumbai, and is working on projects in Gurgaon, Hyderabad and Kerala. It is also looking to set up a resort hotel in Goa. Though BRIC countries are not contributing significantly to the Four Seasons kitty, the rate of development and growth, said Mr Sharp, in the next few years would grow substantially.
    Founded in 1960, Four Seasons has followed a targeted course of expansion, opening hotels in major city centres and destinations around the world. Currently Four Seasons has 75 hotels in 31 countries.

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