INDIA HOSPITALITY Corporation (LSE: IHC, IHC or India Hospitality) announced on June 12, that Ravi Deol, a name synonymous with the successful development of organised retail in India, has joined with the company as part of a major initiative to rapidly grow its hotels and food services businesses.

Deol joins IHC’s board of directors and has been named as chairman and chief executive officer of Mars Restaurants Private Limited, IHC’s hotels and food services division.

IHC is one of India’s newest diversified hospitality companies, formed last year through the acquisition of Gordon House Hotels, Mars Restaurants, and SkyGourmet Catering.

Confirming the news, Deol said, "I am excited by this unique association with IHC as it gives me the opportunity to build on India’s fastest emerging consumer sector and the platform that allows me to pursue my entrepreneurial ambitions. My enthusiasm and understanding of this sector will see the creation of food and hotel concepts, which will be executed with speed and excellence.

"A large committed pool of capital and strong management team will build significant value creation for both consumers and shareholders. I consider that the current stage of the Indian economy presents us with the perfect opportunity for both organic and inorganic growth."

Deol to lead IHC’s newly launched hospitality fund:

The board of India Hospitality Corporation also approved the launch of a US$ 200 million hospitality fund. Deol will be the managing director of the general partner of the fund. The fund’s capital, combined with leverage will allow the company to make a significant investment into the development and/or acquisition of Indian hospitality properties.

"With significant equity capital at the company’s disposal, we believe IHC can add nearly 2,000 hotel rooms and drive earnings growth," commented Richard Foyston, IHC deputy chairman.

Foyston, additionally noted, "Having Ravi Deol on board is another step in executing IHC’s core strategic initiatives. His experience brings significant value to the existing IHC management team and to our new hospitality fund, and we look forward to working together."

About Ravi Deol

Ravi Deol has pioneered several ventures, including founding Barista, India’s first indigenous coffee chain, which revolutionised lifestyle-driven high street consumption. He was the architect of the Bharti Wal-Mart joint venture, which marked Bharti’s entry into the retail sector. Earlier, he gathered a wide ranging experience with brands such as Coca-Cola and Wipro Consumer.

Deutsche Bank AG is IHC’s nominated adviser and broker for the purposes of the AIM rules for companies. Its responsibilities as IHC’s nominated adviser and broker under the AIM rules for nominated advisers are owed solely to London Stock Exchange and not to IHC, any director of IHC or any other person.

No offer or invitation to purchase or subscribe for ordinary shares in or warrants to purchase or subscribe for ordinary shares or warrants of IHC is being made by this announcement.