The Government has permitted AAPC Singapore Pte Ltd - a hotel management company based in Singapore to invest Rs 365.78 crore in an Indian company to construct, develop, own and manage low-budget Formulae 1 hotels in India. The Foreign Investment Promotion Board has approved the proposals, according to which AAPC Singapore can invest up to 100 per cent in an Indian company by subscribing to equity and fully convertible debentures to construct, develop, own and manage Formulae 1 hotels in the country.
Formulae 1 hotels, under Accor brand, are world famous for offering contemporary functional rooms with basic amenities at reasonable prices and serves as the international scale for budget hotels. Earlier in 2006, Emaar MGF and Accor planned to invest $300 million over the next decade, to build Formulae 1 hotels in the country in a joint venture, Budget Hotels India Pvt Ltd.
Budget Hotels India Pvt Ltd had planned to construct 50 hotels in the major metro cities during the first five years and the other 50 hotels to be built in the second operational stage, in 2006. The company aims to provide 10.000 hotel rooms during its entire course of development. Emaar MGF is a joint enterprise between Emaar Properties and MGF Developments.
