Thursday, September 23, 2004

Luxury hotel room capacity to double

For you and me, that only means more concrete, more congestion...

Bangalore turning hospitality magnet
The Economic Times

The boom in the hi-profile hospitality business is drawing big ticket investments across India with Bangalore perhaps turning out to be one of the largest beneficiaries in the next three-four years.

Industry experts say 3,000 rooms in the four-five star category may get infused into the city inventory with a ball-park investment ranging from Rs 1,200-1,500 crore. It may well be one of the biggest chunks of rooms being added into any metro without the added impetus of a sporting event or international convention like the Asian Games and CHOGM in New Delhi.

It means Bangalore’s star room capacity is tipped to take a quantum 175% jump from a 1700 at present to around 4600-4700 rooms in the near future.

New hotels with sizes varying from a 120-130 room ITC Fortune Park to a 350-room Hyatt or a Hilton are said to be in the pipeline.

Though Bangalore has the smallest inventory of star rooms compared to Delhi (4800) and Mumbai (6100), it is the leader in average room rates by miles driven by a yet unsatiated demand from the IT and BPO sectors.

Among the more talked about projects are JW Marriott’s potential entry into the Bangalore market in an alliance with the UB Group. As it stands now, market sources say the liquor giant is out of the project.

The three-four acre plot, carved out of the 14 acre prime location housing the UB corporate headquarters in the past, has been sold to the Rahejas to develop the 265 room Marriott hotel.

Sources said the investment would typically be in the region of Rs 300 crore including the land cost.

The Prestige Group — in partnership with UB — will develop the rest of the space into office area, malls, about 150 luxury service apartments with the US based Oakwood company.

Another hotel venture which is brewing is a 350 room five star property behind the Golf Course on Airport Road. Promoted by the triumvirate of Coke bottler and investor in Deccan Aviation, S N Ladhani, Virwanis of Embassy Builders and Dubai based businessman and owner of Le Meridien in Bangalore, C B Pardhanani, the project may call for an investment of Rs 200 crore plus. The promoters are talking to several lead international brands for a tie-up.

Also noteworthy are projects by brands like ITC, Leela, Oberoi and Taj which already operate hotels in the city. ITC Hotels is said to be looking at a project which may have a 200-250 room ITC Sheraton and a 120-130 room Fortune Park on the same plot of land in the heart of town. Oberoi is considering a 200-250 room five star accompanied by 100-150 room service apartments enroute to the proposed international airport in Devanahalli.

The Leela Group is also talking to landowners in the same area for a luxury property. The two projects may involve investments of Rs 500-600 crore in the least. The Taj Westend is planning on 100 more rooms to its existing inventory.

Entertainer Sanjay Khan’s Golden Palm spa and resort may add another 100 rooms to the present set of 140, while Angasana Spa, promoted by Prestige Group, may double its inventory of 45 suites.

The Ramanashree Group is adding a three star hotel, Ramanashree Brunton while Chancery, a mid-size brand has constructed a four-five star hotel in the city centre. Atria Group, which already operates a 170 room property, has firmed up plans for a 100-120 room hotel in Whitefield, which houses the International Tech Park.

City based businessman DK Aadikeshavalu is said to be promoting a potential Radisson hotel with Unitec Builders of Delhi in Whitefield area. Also in the queue are the Taj Group which is likely to put up a 150 room Residency also near ITPL.

And if this is not enough, hospitality experts say Four Seasons and Shangrila are also looking for a 200-300 room hotel to establish their footprint in the city.

While still on the drawing board, the Mantri builders are also considering a hotel on Sarjapur Road as part of an integrated commercial and retail development project.


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