Though the Taj group has a presence in Gujarat in the form of a sales and marketing office in Ahmedabad for the last few years and is doing excellent business through bookings and other sales, Indian Hotels Ltd thus far hd no hotel property in the state. The tieup with Royal Manor marks the long awaited entry of the group into Gujarat.

Speaking to newspersons here, the chairman and managing director of Royal Manor Hotels, M Ummed Singh Champawat said that though Taj has been exploring possibilities of making an entry into the state, the granting of international status to the Ahmedabad airport recently has proved a clincher. "Not only has our hotel become more important by virtue of being the only five-star located strategically close to the airport but an international airport at close proximity also throws up a lot of opportunities and possibilities for international marketing of Ahmedabad city, the industrial hub of the state."

The contract between Royal manor and the Taj group has been signed on a gross operating profit based on occupancy slabs. Under the agreement, while the majority of employees will be retained, a new general manager in-charge would be appointed by the Taj. According to Champawat, the rechristened Taj Residency Ummed would aim to develop into a premium business class hotel. A sum of Rs 5 crore has already been earmarked to upgrade the existing facilities in keeping with the requirements of business travellers.

"We are planning to provide rooms with computers with internet connections and e-mail and fax machines as well as develop an exclusive club for the big businessmen of Ahmedabad including a separate restaurant and fitness centre," he said.

Commenting on the erstwhile tieup with the French hospitality major Accor for management of the Ahmedabad Ummed, Champawat said that the understanding with the Accor had been that they would help Royal Manor run the hotel till the time they found an alternative option. The French group will, however, remain associated with the Ummed chain of hotels which has embarked on a major expansion spree in Rajasthan, he said and will continue to provide technical assistance and management contracts. It may be mentioned that the Ummed group is planning to create a chain of luxury hotels at prime business and tourist destinations of Rajasthan.