The Singapore arm of Accor Hospitality is likely to invest Rs 366 crore in an Indian company.

Accor is planning to invest up to 100 per cent in an Indian company by subscribing to equity or fully convertible preference shares. The planned investment will be made in Budget Hotels India Pvt Ltd (BHIPL), the company's equal JV with EmaarMGF Land Ltd. The JV is planning to set up 100 'Formule 1' hotels with 10,000 keys in phased manner and will set up 50 hotels in Phase I by 2012.

However, due to difficulties in land acquisitions, Accor is likely to rethink its plans to make the project financially feasible. Now, the company has been exploring various development models for the brand like setting up the hotel atop a shopping mall, making it part of mixed-use developments, using extra floor space index to lease out for retail, food and beverage and commercial.

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Accor inaugurates Hyderabad hotel, plans 13 more (17-Mar-09)