New Delhi, Aug. 28 :     The Lalit Suri-promoted Bharat Hotels has reached an agreement with UK-based Intercontinental Hotel & Resorts to extend its Intercontinental franchise to its two new five-star deluxe hotels in Mumbai and Goa. Bharat Hotels already has a tieup with Intercontinental for its Delhi hotel. Intercontinental is part of the Bass Group of Hotels and Resorts which has over 2,400 hotels around the world. Under the agreement with Bharat Hotels, its 400-room property in Mumbai will now be called Hotel Intercontinental, Mumbai and the one in Goa with 300-rooms will be called Goa Intercontinental Resorts. Under the agreement, Bharat Hotels has agreed to pay a lump sum management fee of $ 75,000 for its hotel in Mumbai and $ 50,000 for its hotel in Goa. While the reservation fee for both the hotels will be 5 per cent of the reservation revenue, payment towards international marketing and sales will be 1 per cent. The two hotels are yet to tie up for Bharat Hotels? Sringar property. Sources in the hotel say a formal tieup will take place only in April next year since restoration of the palace is still under way. The palace is expected to be fully restored by next month. Hotel sources say the property will be called Grand Palace Intercontinental. This is the only hotel where Suri?s brand name ?Grand? is being used. Earlier, he had hoped to use the Grand brand name in India while agreeing to lend the same to the Intercontinental chain worldwide. But the board of Intercontinental did not agree to it. After Mumbai, Goa and Srinagar, Bharat Hotels is now looking at Chennai, Calcutta and Jaipur to develop new hotels and is currently looking for properties in these cities. Its hotel in Mumbai is located in Andheri East, near Sahar Airport over an eight acre area and its resort in Goa is over a sprawling 86-acre area. Bharat Hotels entered into a tieup with Intercontinental in May 1998, after snapping ties with Hilton in March last year. The tieup was for Bharat Hotels? 445-room hotel in the capital. It was to pay 1.5 per cent of the turnover as franchise fee plus 3 per cent as management fee. Bharat Hotels has had a series of broken tieups. It tied up with Hilton after it fell apart with Holiday Inn. In 1998-99, Bharat Hotels reported a turnover of Rs 81.65 crore, down from the previous year?s Rs 107.83 crore. Its net profit stood at Rs 14.41 crore. The board of directors recommended a 10 per cent dividend.