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IHG to exit Holiday Inn Express joint venture with Duet India

British multinational hotels company InterContinental Hotels Group PLC (IHG) is divesting 24% stake in its joint venture (JV) with Duet India Hotels (DIH).

 The partnership, with the hotel investment arm of global asset manager Duet Group, was formed in April 2011 to develop 19 new Holiday Inn Express hotels across India. Between them, the two companies were looking to invest a total around $125 million. Pascal Gauvin, chief operating officer - India, Middle East, Africa, InterContinental Hotels Group, told DNA Money, "We can confirm that IHG is selling its equity stake in a multi-year investment back to Duet India Hotels Group.

This is line with our global, asset-light strategy, which allows us to grow faster with limited capital investment. We will continue to operate the existing properties in our portfolio with Duet." He was in Mumbai for the Hotel Investment Conference - South Asia (HICSA) 2017 concluded on Thursday.

Gauvin, however, did not share financials associated with this development or for that matter, the operational status of all the 19 Holiday Inn Express hotels to be developed by the joint venture. Five years ago, IHG had agreed to make a multi-year investment of $30 million into this partnership. Back then the plan was to add around 3,300 rooms to IHG's India development pipeline of over 10,000 rooms (46 hotels). The 19 hotels were expected to be operational by 2016.