A US-headquartered budget hotel chain is checking into Calcutta, continuing the boom in the city’s hospitality sector.

Berggruen Hotels, which launched its brand of boutique budget hotels, Keys, in India in January this year, will build a 280-room Keys hotel next to Ruby General Hospital, on the EM Bypass, and another 200-room property in New Town, Rajarhat.

“We are in the final stages of acquiring the one-acre plot next to Ruby and the trendy three-star budget hotel will open its doors in January 2010,” Sanjay Sethi, managing director and CEO, Berggruen Hotels, tells Metro from Mumbai.

The group, backed by Berggruen Holdings Inc. with an equity capital of $100 million, is also in the process of acquiring land for its Rajarhat property. “We could do a 200-room upscale hotel or a mix of rooms and serviced apartments, to be ready by April 2010. We should be spending around Rs 115 crore on the two projects,” adds Sethi.

Keys Hotels, one of the first brands with private equity funding from the US developing a chain of hotels in India using local expertise, is also hunting for a third property in central Calcutta for another contemporary business hotel.

Berggruen Holdings is a private company founded in June 1984 by Nicolas Berggruen. It manages and invests its proprietary capital, exceeding $1.5 billion in a range of asset classes, including direct private equity, stocks and bonds, hedge funds, private equity funds, art and real estate.

Berggruen Advisers was started in September 2006 by Kabir Kewalramani, in association with Nicolas Berggruen. The company has invested in a Greenfield chain of boutique budget hotels, serviced apartments and real estate in India.

“Calcutta definitely needs a quality branded product in the budget hospitality segment and we will bring to the table contemporary business hotels with price points of $50 to $55 (around Rs 2,000). There’s growing aspiration among business travellers in that segment and our competitive pricing will drive volumes,” declares Sethi, the ex-general manager of Taj Bengal.

Keys hotels will come with fully equipped business centres and meeting rooms with the services of a business concierge, in-room Internet access and a direct-dialling facility to take care of all business needs, according to a group spokesperson.

“After work, residents can make use of a full-fledged gymnasium, a sports bar and an all-day restaurant to unwind,” she adds.