September 17, 2013 / 22:27 IST
India will become the third-largest market for the Hyatt Hotel Corporation in the coming decade says its executive chairman, Thomas Pritzker. As the brand turns 30 in India, Pritzker spoke to CNBC-TV18's Kritika Saxena in what is his first-ever television interview in the country and while he remains confident of storing growth, he says high land costs, and delays in clearances are keeping him from investing in a 100 percent venture here.
Thomas Pritzker is the only member of hotel giant Hyatt's founding family to still run the business and has high hopes from the Indian market. Despite problems with regulatory clearances when it comes to land, Pritzer, speaking exclusively to CNBC-TV18, says all seven Hyatt brands will have a presence in India within two years.Thomas Pritzker, exec chairman, Hyatt Hotels Corp says “India will become one of the largest geographies for the Hyatt group in the coming decade. We are currently building an 'Andaz' property in ND for the first time and are also coming in with a 'Hyatt' product. All products will be fully represented in India in next two years,” Despite 100 percent foreign direct investment (FDI) allowance, you only have two hotels in India that you co-own, remaining are management contracts. Will you look at buying a hotel 100 percent or are land costs and clearances still an issue? “No, at this point land costs are so high plus I don’t think we are capable of developing a land and setting up a hotel completely on our own. Land clearances and delays are definitely a concern for us,” he adds.Over and above the Hyatt brand and hospitality, does the Pritzker family have interest in India? Pritzker says “We are looking out but we need local partners. We do from time to time initiate conversation with our friends here in India for prospects. We will look at sectors like infrastructure and power that need heavy investment. We will probably stay away from the Hi-Tech sector.”Pritzer is also clear that his group will hold off on any big-bang investment in India, till the 2014 general elections are complete, and some clarity on policies emerges. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
