Indian Hospitality's Longest Standing Contract Comes To An End

30-Year Agreement Under Renegotiation As ITC Hotels And Sheraton Weigh Options

Savio Rodrigues - New Delhi

Indian hospitality's longest standing contract between the ITC Hotels and Sheraton Hotels & Resorts (a brand of Starwood Hotels & Resorts Worldwide Inc) which was inked in October 1975 is coming to an end in October 2005.

After 30 years, the agreement that brought together one of India's longest lasting international hospitality business partnerships has reached a phase of renegotiation.

Speaking exclusively to the Express Hotelier & Caterer, Nakul Anand, managing director, ITC Hotels said, "The contract is coming to end and is up for renewal. We are reassessing our relationship." The ITC-Welcomgroup Sheraton Hotels started with the Welcomgroup Chola Sheraton in Chennai and further expanded to its current strength of 10 properties in the country, the latest being the ITC Hotel Grand Central Sheraton & Towers, Mumbai.

In an exclusive written comment to this publication, Miguel Ko, president - Asia Pacific, Starwood Hotels & Resorts Worldwide Inc, expressed, "ITC Hotels and Sheraton have had a 30-year corporate relationship. During that time period, both companies have grown substantially (both in size and number of brands) and the India market itself has also changed and grown as much. So, it is normal and expected that both companies continue to discuss and re-evaluate the best model for our two companies to co-operate, particularly during the contract renewal time window." He further added that, “This is indeed a friendly and cordial process."

While speculation is rife within the industry on the continuity of this long-standing partnership, neither ITC Hotels nor Starwood were willing to commit anything on the renewal of the contract at this stage.