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regular-article-logo Friday, 14 June 2024

IHCL signs 20-year management contract with Calcutta-based realtor Merlin Group to operate Ibiza resort

The existing facility will be upgraded and expanded to a 130-key property and run under the SeleQtions brand from the third quarter of 2025

Our Special Correspondent Calcutta Published 05.04.24, 11:14 AM
20-year contract

20-year contract Sourced by the Telegraph

Indian Hotels Company Ltd (IHCL), the largest hospitality chain in the country, signed a 20-year management contract with Calcutta-based realtor Merlin Group to operate Ibiza resort on Diamond Harbour Road near Amtala.

The existing facility will be upgraded and expanded to a 130-key property and run under the SeleQtions brand from the third quarter of 2025. This will be IHCL’s 7th property in the city, adding to its rapidly growing repertoire within a short span of two years.

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Merlin plans to spend about Rs 60 crore to add 89 rooms to the existing property, which has been in operation for nearly a quarter of a century. Spread over 11 acres, the resort will offer an all-day diner, a specialty restaurant, a swimming pool, a lake and a variety of recreational activities and banquet facilities.

“This is our first project in the hospitality segment. Even though we spoke to a few others, finally we zeroed in on IHCL. If we go for more hospitality projects in the future, IHCL will be our preferred partner,” Sushil Mohta, chairman of the Merlin group, said after announcing the tie-up.

Ibiza is the second SeleQtions branded hotel from the Tata group backed IHCL, which operates the Taj and Vivanta brands, in Calcutta. It operates the Raajkutir property of the Ambujas under this brand on the E.M. Bypass.

Commenting on the tie-up, Suma Venkatesh, executive vice-president — real estate and development, IHCL, said, “This signing is another step in IHCL expanding its footprint in Calcutta. It will address the need for getaway destinations at a short driving distance from the city.”

Explaining the rationale to hand over the management of Ibiza, Mohta said Merlin felt the need to induct a hospitality operator when it considered expanding the property. “We are a real estate company. When we thought of taking Ibiza to the next level, it was important to have an operator that has core competence in hospitality,” Mohta said.

Housing surge

Knight Frank noted Calcutta reported a 12 per cent growth in sales and an 89 per cent jump in property launches in first quarter of 2024 in Calcutta, ahead of the national average of 9 per cent and 7 per cent, respectively.

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