Unitech, Marriott Int. to invest $720 mn in Hotel Projects

July 19, 2007	(2 votes, average: 1.5 out of 5)  Loading ...
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Unitech, India’s leading property developer plans to invest a whopping $720 million in the next four years to construct 28 hotels in partnership with Marriott International, the world’s biggest operator of a range of luxury hotels.

Four hotels are already under development and the construction work for 10 other hotels is scheduled to begin by end of the current year. Of these 10 hotels, 4 will be operated by Bethesda, the Maryland-based Marriott.

The per capita annual income in India has risen by 86 per cent since 2000, a factor encouraging Marriott, Stanwood Hotels & Resorts Worldwide and InterContinental Hotels Group to develop properties.

India is poised to emerge as one of the top five destinations for business travelers in next 10 years, says the London based World Travel & Tourism Council.

Hospitality industry will be the main focus area of most real estate developers in near future. There are 50,000 luxury hotels in India at tariffs increasing from Rs 5,000 ($124) to Rs 15,000 a day, with an overall room shortage of about 33 per cent, says K D Mehru, an analyst at Khandwala Securities.

To cash in on increasing demand for occupancy, resorts and paying guest accommodations in Mumbai have increased the tariffs for rooms by about 40 per cent in the last 1.5 years.

People especially the high middle class don’t mind in paying extra cost if getting extra facilities on hand. Hotels will not only provide the visitors with accommodation facilities but food, recreational activities, and other services as well. Moreover, this is how the hotels make money - by offering more.

Unitech has a multitude of hotel projects in its pipeline. Among them, there are few to be developed in Kolkata, Noida, and Gurgaon. Add to that, the builder will soon take up the project of constructing executive apartments in Gurgaon, which will be run by Marriott International.

News Published Under:   Hotel Industry in India |

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