Accor and InterGlobe have established an investment fund for hotels in India along with Pacifica Partners which will have a significant stake of 36 percent equity in the fund. Accor and InterGlobe will each hold a 32 percent stake to complete the fund holding.

This is an approximately Rs. 1500 crore ($325 million) venture with hotels which will run under the Accor brand. It includes opening hotels at seven locations with key presence in Delhi, Bangalore and Chennai. These hotel projects will be completed between 2011 and 2013.

Accor is the world’s leading hotel operator and market leader in Europe with presence in 90 countries, with 4,100 hotels under its hold. Popular brands include Novotel, Sofitel, and Hotel F1 amongst others.

Phoenix Legal was the Lead Transaction Counsel for both Accor and InterGlobe. Partner Abhishek Saxena, led the deal along with Senior Associate Arun Madhu and Associates Nishita Budhraja and Parnika Malhotra.

Amarchand & Mangaldas acted as the Domestic Legal Counsel for Pacifica Partners led by Partner, Leena Chacko while Morrison Foerster acted as the International Legal Counsel for Pacifica Partners.

Gilles Pelisson, Chairman and CEO of Accor said in a press release, “The establishment of this fund demonstrates Accor’s ability to enter new markets through effective partnerships, creating a portfolio of high quality assets and then realising the potential of these assets. The investment of Pacifica into this fund provides a platform for further growth in the strategic market of India where Accor and InterGlobe have already created an extensive development pipeline”.

Rahul Bhatia, Group Managing Director at InterGlobe says, “We are committed to growth in the hotel sector in India. The establishment of this new investment fund represents our intention to expand our footprint of upper midscale and upscale hotels in India”.

Pacifica Partners is an asset manager for the joint venture hotel investment company established between an affiliate of GIC Real Estate Private Limited, the real estate arm of the Government of Singapore.

Indo Asian News Service has reported that Accor has opened eight hotels in the five years since entering India with a joint venture arrangement with InterGlobe Enterprises.