Diversified hotel and tobacco major ITC Ltd and Sheraton Corporation-part of Starwood Hotels & Resorts-could part ways after a 29-year marketing and franchise relationship. 

The franchise agreement is due for renewal in June-July, 2006 but it's uncertain whether they will renew the tie-up.

Market sources say ITC's next management contract could be with either Shangrila or Radisson. Only 10 of ITC's 60 hotels are branded 'Sheraton' which markets these as ITC-Welcomgroup hotels worldwide.

ITC's Hotel division was launched in 1976 with the opening of its first hotel-Chola Sheraton in Chennai. In case ITC is unable to tie up a marketing contract for Sheraton branded hotels, it may have to go for an interim re-branding till it finds another partner.

An ITC Hotels spokesperson told FE that its contract for the use of the Sheraton brand will come up for renewal this year and it has yet to take a decision. 'It would be wrong to say that the contract has been terminated.

( www.etravelblackboard.com)