Kempinski Hotels has signed a management agreement for Kempinski Ambience Hotel Delhi, with the opening planned for the second quarter of 2012.

The 480-bedroom luxury hotel will be set in the historic neighbourhood of Shahdara in the Eastern part of the city.

When opened, the property will boasts an extensive spa and fitness centre with a sauna and hammam, as well as two swimming pools. No further details were revealed at this time.

The opening of the hotel will not affect the 25-year marketing alliance that Kempinski currently has with Indian operator Leela Palaces, Hotels & Resorts.

In 2011, the parties agreed that it was in the interests of both groups, to optimise the relationship, by aiming for a progressive and controlled phase-out over the next years.

Kempinski Hotels believes that this progressive phase-out will allow Leela to benefit from access to Kempinski's strong marketing campaigns, while gaining in independence.

Leela opened its own 260-bedroom hotel in Delhi in April 2011, with facilities including a a 6,500sq ft (604sq m) Spa by ESPA, designed by Jeffrey Wilkes.

Last month, Kempinski announced its re-entry into Latin America with the signing of a management contract for a new luxury resort in Colón Province, Panama.