• Emaar MGF teams with Hyatt and seeks IPO

Emaar MGF, the New Delhi-headquartered property and hospitality company, has entered into a joint venture with Hyatt to roll out its Hyatt Place brand.

The company is separately seeking to raise $1.8bn in an IPO on the Bombay Stock Exchange. The process started earlier this week despite the turmoil in stock markets around the world.

Emaar MGF is a joint venture between Dubai's Emaar, which holds 42% of the shares, and MGF, West Asia's largest property developer by market value, which holds 52%. After the IPO the respective holdings will be 39% and 48%.

The joint venture already has agreements with both Whitbread, for Premier Inn, and Accor, for Formule 1. The company additionally has relationships with InterContinental, Marriott and Four Seasons.

The IPO will enable Emaar MGF to push ahead with rapid expansion of its hospitality, retail and residential portfolio.

On the hotel side, its agreement with Accor encompasses 50 hotels in the next five years; for the 50:50 joint venture with Whitbread it is to develop 80 Premier Inns over the next 10 years.

The latest deal with Hyatt is for 20 hotels with about 3,000 rooms over the next 10 years. It is understood Hyatt has a 26% stake and Emaar MGF the remaining 74%.

Emaar MGF has also confirmed that it will in the next 18 to 24 months seek to establish a REIT in Singapore into which it hopes to fold much of its property interests.

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