IHCL COO & senior vice-president (international division) Rajiv Gujral told The Financial Express: "We have put across our intentions of participating in the equity in the Cairo property."

The company is scouting for properties in Egypt, and also in the Red Sea area. Mr Gujral, however, said that the company will restrict its equity venture to Cairo in Egypt. It will look for possibilities of entering into strictly management contracts, and not ownership, outside Cairo and in the neighbouring areas of Oman, Yemen, Syria, Lebanon and Libya and Red Sea.

Mr Gujral said that a few leases are likely to expire in 2002, and the company would keenly look forward to these deals subject to the right opportunity.

Meanwhile, IHCL has taken its tally of international properties to 12 by recently bagging the management contract for a period of 14 years for the newly constructed five-star hotel property in Dubai.

The hotel, which is expected to be thrown open in March this year, has 260 rooms including 89 service apartments and five restaurants and is owned by Juma Al Majid group. This group has pumped in $91 million into the hotel which will be managed by IHCL.

According to Mr Gujral, out of the 10 international hotel companies which pitched for the Dubai hotel property management contract, IHCL is the first Asian company to get the contract in the Dubai five-star hotel market.

IHCL, according to Mr Gujaral, has gone in for the management contract route and not equity participation here as competition is huge with the total capacity at 27,000 rooms with an additional 9,000 rooms being added. Company officials said that the management contracts route is a fast way of expanding into the region, keeping in view the global trend where international companies are divesting into their existing properties and scouting for management contracts worldover.

IHCL's move to expand its presence globally will mainly lead to strengthening its dominance in the Indian market, which is facing a fresh bout of competition.

Taj Asia in JV with strategic investor
Taj Asia, the holding company set up for IHCL Maldives and Sri Lankan hotel properties, has signed the 50:50 equity deal with a strategic investor, which is to be announced shortly. Company officials said that the board has already approved the joint venture. The strategic investor - which is a leading group with diversified interests outside India, in the SE Asia and Asia Pacific regions - will pump in $15 million into Taj Asia.

Taj Asia will be a vehicle for exploring acquisition opportunities of five star hotel properties in key strategic locations in the South East Asia and Asia Pacific regions.