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Global Chains Pony Up Equity For India Agreements

Author: Bill Barnett. Category: Hotels. Posted: 29th May 2012

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Picking up an article in one of country's business papers the hot topic was an increased trend by overseas operators who are putting up soft loans, sliver equity, funding pre-opening or marketing and other incentives.

Given the continued favorable supply and demand situation along with high room rates, chains continue to rush to the sub-continents doorstep.

In some cases the piece says now operators or start ups are forced to provide key money for signing management contracts.

For international chains sustained growth of their pipelines remains a paramount goal and given the lucrative size of India's market, it's certainly a prime target.

Just make sure you bring your checkbook.

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