hotel

Hotel Industry increasing its Presence in Tier-II and Tier-III cities

by Paul Joseph June 15, 2011

With rising real estate prices, hotel companies in India are increasing presence in tier-II and tier-III cities through midmarket and budget segments. Low-cost hotels in smaller cities will see a growth of about 50% in the next four years, consulting and research firm HVS said in a report. The average per key cost of budget and mid-market hotels are about Rs 30-50 lakh compared with Rs 85 lakh to Rs 1 crore for first class and luxury hotels. Budget hotels break-even and turn profitable faster than their peers in the luxury space. Such an arrangement works better not only in terms of investment, but also in terms of returns. The return on capital employed (RoCE) of mid-sized hotels was more than 15% in the past five fiscals while larger peers such as Indian Hotels, EIH , and Hotel Leela Venture had RoCE of below 15%. To tap the growth opportunity in the budget hotels space in smaller cities, several foreign players have tied up with local hotels to increase presence in India. Intercontinental Hotel Group recently signed a joint venture with India’s Duet Hotels to launch the Holiday Inn brand. It would develop 19 properties in the initial phase. On the domestic front, segment leader Indian Hotels would have an inventory of about 48% in the mid-market and the budget hotels segment in the next 2-3 years. Mid-segment hotels companies such as Royal Orchid Hotels , Kamat Hotels , and Taj GVK Hotels & Resorts are also expanding presence in tier-II and tier-III cities. High occupancy rates and revenue per room and low debt will drive growth of mid-sized hotels in the coming years. Mid-sized hotels have an average occupancy rate of 68% and revenue per room of Rs 4,624. Most of these companies are operating at low debt helped by a new business model and restructuring exercises. Also, the rise in foreign tourist arrival in India will boost revenues for budget hotels in smaller towns. Foreign tourist arrivals in May were up 7% from the previous month, government data showed.

Tagged as: budget-hotels, foreign-tourist, hotel, hotels, indian-hotels, real estate developers, real estate india, royal-orchid, such-as-indian

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Deneb & Pollux Plan Restaurants in Delhi and Mumbai

by Paul Joseph April 30, 2011 Uncategorized

Delhi-based travel services provider Deneb & Pollux on Thursday said it is in talks with private equity firms for raising money to part-fund its entry into the hotels segment with a planned investment of Rs 200 crore. The company, which recently set up a fine dining restaurant — 21 Gun Salute — in Gurgaon as a part of its diversification strategy, will put up two more restaurants in Delhi and Mumbai. “We have an investment plan of Rs 200 crore to set up hotels. Half of it would be funded by promoters and bank loans and for the remaining, we are currently in talks with Singapore-based private equity players,” Deneb & Pollux co-founder and managing director Madan Mohan said without divulging names. He said the firm is likely to finalise deals with two PE firms by the end of this year and would dilute 25 per cent of the promoters’ equity. For the entry into the hotel segment, the company has already bought two sites in Rajasthan. “We have bought a 400-yearold fort at Jhunjhunu in Rajasthan and another land site near Jaipur to build a new hotel in fortstyle,” Mohan said. He said while the hotel at Jhunjhunu would be managed by the company itself, for the other, it would consider a management contract with a foreign hospitality brand. “The two properties in the pipeline are likely to be operational by 2015,” he added. Commenting on the expansion of the restaurant brand, he said: “The total investment planned on three restaurants is Rs 25 crore. The first one has been set up in Gurgaon and the remaining will be in Delhi and Mumbai.” According to Mohan, Deneb & Pollux last year registered a turnover of Rs 100 crore.

Tagged as: banking and finance, hotel, hotels, jhunjhunu, madan-mohan, real estate developers, real estate india, remaining, restaurant, said-the-firm, travel-services

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Real Estate Firm 3C Partners with Four Season Hotels and Resorts to Develop 5 Star Hotel in Delhi

by Paul Joseph April 22, 2011 Uncategorized

Realty firm The 3C Company has partnered with Four Seasons Hotels and Resorts to develop a five-star hotel at the recently announced project — ‘Delhi One’. The company plans to invest about Rs 1,800 crore (Rs 600 crore on land and Rs 1,200 crore on construction) on this venture. The project is expected to be completed in 42-48 months. The strategic move between the two companies was sealed by ensuring that Four Seasons will not develop any other five-star property in Delhi and Noida for the next 25 years. Set to be ready and functional by 2014, the coveted brand of Four Seasons hotel will help further create a niche for ‘Delhi One’ which is set to offer ultra luxury lifestyle. Delhi One project would also feature the Four Seasons residences which would be serviced by the hotel. This strategic tie-up will help strengthen Four Seasons presence in the region and also ensuring that The 3C Company makes an entry into the hospitality sector with élan. Speaking on this new development, Vidur Bharadwaj, director, The 3C Company, said, “It is a proud moment for The 3C Company to commence our hospitality foray by associating with none other than the leading hospitality chain — Four Seasons Hotels and Resorts. This marks a big milestone in the progress of our company, which has continuously endeavored to offer only the best product to its customers.” The Hotel would feature 250 rooms with 180 exclusive fully furnished serviced private residences which one can own. The truly state-of-the-art architecture of ‘Delhi One’ boasts of 180 exclusive fully furnished serviced apartments spread across 10,00,000 sq ft of area with an average sized apartment measuring over 6,500 sq ft. Luxury in the hotel will be extended to these super luxury serviced private residences. Bharadwaj further added, “Delhi One is the epitome of The 3C Company’s architectural excellence and is bound to change the way NCR has been perceived. The tie-up with Four Seasons marks the grand emergence of Noida in the international real estate sphere.” When asked about project funding, Bharadwaj informed, Realty Plus, “Besides internal accruals, the company has tied up with an FDI partner. The funding will also be generated through selling office space.” However, he declined to share the FDI partner’s name. Detailing the strategic milestone, Christopher Wong, senior vice president, Four Seasons Hotels & Resorts, said, “Today is a momentous occasion for all of us as this marks a significant milestone of our growing operations in India. This truly enhances our geographical reach within the country and reinforces our vision of ‘Creating world class properties’, touching new frontiers of development.” While common services in public areas like security and concierge will be provided, other services like room service and housekeeping will be optional, and available on ala carte basis. The price of these super luxury serviced residences has yet not been decided. Four Seasons which have been targeting, Delhi, Mumbai and Bengaluru for its hotels zeroed in on Delhi One. Says Wong, “We have been even approached for setting up hotel in Business District of Delhi’s new international airport but we did not find it as the right location. We continue to have right brand equity with right location and project.” Four Seasons, according to Wong, is now looking at Rajasthan, Kerala and Goa for its resort projects. He describes Gurgaon as a potential future destination for Four Season property. ‘Delhi One’ is envisaged as ‘The Destination’ for the privileged few spread across 12.5 acres of mixed land use adjacent to the DND flyway in sector 16 B, Noida. With a promise of luxury redefined, ‘Delhi One’ proposes to have ultra modern facilities with nature friendly development. The exclusive residences will boast of concealed parking, a concierge service, sports courts, swimming pools and medical touch points. The hospitality venture will come up on Management Contract model.

Tagged as: between-the-two, business, country, geographical, hotel, marks, real estate india, seasons, seasons-hotels, strategic

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IHG to come up with 45 Hotel Properties across India by 2015

by Paul Joseph April 18, 2011 Uncategorized

Luxury hotel group InterContinental Hotels is planning to open over 45 hotel properties across India by 2015. These properties will be developed in the cities like in Delhi, Mumbai, Jaipur, Bangalore, Ahmadabad and Kochi. Meanwhile, it has just opened Holiday Inn in Hinjewadi, Pune. The company has invested around Rs 70 crore in this property. The hotel offers 172 rooms ranging from deluxe, studio, executive suites, restaurants and meeting spaces. Commenting on the launch, Kadambini Mittal, director commercial South West Asia said, “IHG is an international hotel company whose goal is to create Great Hotels Guests Love and Holiday Inn Pune Hinjewadi aspires to be just that. It is ideal for an enthused business trip and social events.” She added, “We are rapidly growing and will increase our foot prints to cover all metros and mini metros by 2015. Following the opening of this strategic property, we will add additional hotels in 2011. The business traveler in India has become value conscious and it is our group’s endeavor to offer luxurious hotel accommodation combined with unsurpassed service.” Elated with the opening of the hotel, Jay Welinkar, general manager, Holiday Inn reaffirmed, “Meeting high grade standards and assured quality from the IHG brand, the Holiday Inn Pune Hinjewadi promises its guests a truly refreshed experience with the best of hospitality and dinning services. Bringing in the refreshed hospitality experience, the world class brand has an array of features and services to offer. A fresh solution to the needs of the global business travelers and leisure guests alike, the hotel has multiple banqueting venue options, security that matches international standards and a plethora of dining options with trademark hospitality and efficient service.” The Group owns a portfolio of hotel brands including InterContinental Hotels & Resorts, Hotel Indigo, Crowne Plaza Hotels & Resorts, Holiday Inn, Hotels and Resorts, Holiday Inn Express, Staybridge Suites and Candlewood Suites. According to IHG, it has more than 1,700 hotels in its development pipeline, which will create 200,000 jobs worldwide over the next few years.

Tagged as: assured-quality, great-hotels, gurgaon, holiday, hotel, hotel-indigo, noida, real estate, refreshed

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Hotel Leelaventure to Generate Rs 950cr through Sale of Non-Core Assets

by Paul Joseph March 7, 2011 Uncategorized

Hotel Leelaventure is expecting to get about Rs 950 crore from sales of its non-core assets and in joint company ventures to reduce the company’s debt. At its board meeting in Mumbai, Hotel Leelaventure made this announcement. The board has decided to sell major portion of the commercial office space in Chennai and to enter into joint development agreements with reputed builders on company-owned land in Hyderabad and Bangalore for residential or commercial development. It also decided to offer up to 14.95 per cent of its enhanced capital to prospective investors by issue of fresh equity shares.

Tagged as: announcement, from-sales, hotel, hotel industry in india, its-non-core, property prices, real estate developers, real estate india, retail market in india

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Hotel Industry Occupancy to Rise amidst Corporate Demand and Upcoming Cricket World Cup

by Paul Joseph February 9, 2011 Uncategorized

Marriott International expects occupancy across properties in India to be over 80 per cent compared with mid-70 per cent levels a year ago, as demand for rooms rise on higher corporate demand and the World Cup. “February is a very strong month for the hotel industry predominantly driven by strong corporate demand. On top of that we have generally seen some good demand coming through from sports activities like the World Cup,” said Rajeev Menon, area vice-president of India, Malaysia and Maldives. “In Ahmedabad, our hotel is going to be the main hotel for that city. So, obviously, the demand is very strong,” he said, referring to its ‘Courtyard’ property in Gujarat capital. Marriott also has hotels in several other Indian cities including Mumbai, Gurgaon and Bangalore. The cricket World Cup begins on February 19 and venues include Ahemdabad, Delhi, Mumbai, Kolkata and Bangalore.

Tagged as: gurgaon, hotel, hotel industry in india, indian, international, kolkata, mumbai, property prices, real estate, real estate developers, world

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Real Estate Developer Eros Ends Association with InterContinental Hotel Group

by Paul Joseph December 9, 2010 Uncategorized

New Delhi-based real estate major Eros Group is calling off its association with global hospitality chain InterContinental Hotels Group (IHG). Eros, which already has a management contract with IHG for its five-star deluxe hotel at Nehru Place called InterContinental Nehru Place will gradually move out of the IHG network, according to a report published in DNA. Eros Group officials could not be reached for an official comment, however, an IHG spokesperson confirmed the development while abstaining from sharing details on the possible impact it will have on IHG’s India revenues. “We have agreed to the earlier discontinuation of the hotel management contract due to expire in 2012 for the InterContinental Nehru Place,” said the spokesperson. This apart, two other developments being planned by the realty firm (Eros Group) in New Delhi’s Mayur Vihar area will no longer be part of IHG’s current development pipeline. The IHG spokesperson confirmed saying, “A mutual agreement has been reached as well to discontinue the development projects for the InterContinental and Holiday Inn Mayur Vihar with the hotel owner.” The official added that agreements are being formalised and that the hotel chain will work with the asset owner to ensure a smooth handover of the operations targeted for middle 2011. While there are market rumours about Eros approaching Hilton Worldwide for a possible brand and management association, an industry source said that the realtor is still in discussion with a couple of international hotel chains and that nothing has been finalised as yet. Among Eros’ other hotel developments include the five-star luxury Shangri-La’s Eros Hotel centrally located in the historic government district in New Delhi.

Tagged as: development, hotel, hotel industry in india, pune, real estate

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Real Estate Awards 2010 by Franchise India Holdings Ltd.

by Paul Joseph November 22, 2010 Uncategorized

India’s most prestigious awards dedicated to the estate industry,to celebrate excellence and brilliance with key industry representatives at “Real Estate Awards” presented by Franchise India Holdings Limited is scheduled to be held  on December 2, 2010 at Hotel Ashok, New Delhi. The Real Estate Awards 2010 are given to practices which have consistently achieved high standards and made an outstanding contribution in the Indian real estate sector, the only awards that recognize and felicitate the best in the real estate industry. These awards would serve as the national recognition as the “The best real estate business” in the country and is the best chance to promote your real estate business and a platform for networking and validation for your business. An opportunity to benchmark your business against competitors, ongoing publicity and business lifetime of high-achiever credibility, extensive media coverage and PR with the partners are other added advantages. The  nominations are open only to real estate companies, brokers, builders, developers registered and based in India. Ernst & Young will be the official tabulator for the awards. The event is designed for all professionals with an interest in Indian and international real estate and can be interesting for : real estate service providers , contractors, developers, investors, fund/ asset managers, brokers /traders, builders, consultants, trade associates, lawyers, accountants.

Tagged as: builders, country, estate, hotel, indian, real

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JW Marriott opens property in Pune

by Paul Joseph November 16, 2010 Uncategorized

Luxury hotel brand Marriott International opened a Hotel and Conventional Centre in the city. The 416 room hotel is the 500th Marriot property worldwide and 12th in India. City based Panchsheel Realty has developed this property . This is the second Marriott hotel in Pune, the first is Courtyard Marriott at Hinjewadi. Talking to reporters in Pune, president and chief operating officer, Marriott International, Arne Sorenson said, ” India has the second largest hotel development pipeline in Asia, and is expected to double the number of branded hotel rooms over the next three years to approximately 120,000.” He added, “Recession has significantly affected our business in the US though it has less impact on Inidan business as market is growing here.” Sorenson said it has another 23 under construction, which will become operational by 2013. These include two hotels in Mumbai and one each in Bhopal, Kochi, Nashik, Hyderabad, Goa, Jaipur and Raipur in various segments such as Courtyard, Renaissance and JW Marriott. Marriott International operates and franchises hotels under the Marriott, JW Marriott, Ritz-Carlton, Autograph Collection, Renaissance Hotels, Residence Inn, Courtyard, TownePlace Suites, Fairfield Inn, SpringHill Suites and Bvlgari brands

Tagged as: business, city, hotel, international

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Low Tourist Inflow During Commonwealth Games Disappoints Hotel Industry

by Paul Joseph November 3, 2010 Uncategorized

India Hotels A low tourist inflow during the Commonwealth Games in New Delhi had an adverse impact on the hotels and restaurants business which was left with an over supply of rooms and low occupancy, industry officials said. ‘It was on the assurance of Centre that the hotel industry invested heavily in hotels and restaurants hoping to reap the benefits during the Commonwealth Games 2010.

Tagged as: commonwealth, hotel, hotels, india

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