The venture aims to develop and own 75 hotels and serviced apartments over the next seven years. However, its success depends on written approval from the Indian government.
DLF will hold a 74% stake in the company with Hilton taking the remaining minority stake. Over the next five to seven years Hilton is expected to invest up to $143 million before consideration of debt.
Initially the joint venture will focus on 20 hotels in key locations including Chandigarh, Chennai, and Kolkata. A large number of these hotels are expected to be branded Hilton Garden Inns, its business brand.
Ian Carter, executive vice president, Hilton Hotels Corporation said: “India is an outstanding market for hotel development given its powerful combination of economics and demographics.
“Hilton will build on its collective experience in India and the opportunity with DLF is a compelling next step to capitalise on the development momentum and build our Hilton family of brands in India.”