It’s Time for a Realty Check in Delhi – NCR, say Hoteliers

July 24, 2007	(Be the first to rate this story!)  Loading ...
Print This Story   Email This Story Subscribe Newsletter

With the land auctions for hotel sites in Delhi-NCR getting expensive, hoteliers demand a transparency in the bidding process. It should also be more effective.

The Delhi Development Authority is receiving prohibitive amount for land sites. This in return is pushing the property prices. Further, some sites are again and again put for auctions if they don’t attract a prospective buyer. This is completely unjustified, says Rajendera Kumar, president of Hotel & Restaurant Association of Northern India (HIRANI).

Berggruen Hotels is considering partnering with the Delhi Government to garner capital for its Key Hotel Brand, informs Sanjay Sethi, MD and CEO of Berggruen.

The government must lease out land to hoteliers for development. The project could be done in private-public partnership format, where both the parties will be happy to invest for a joint venture.

Industry Associations are also upset regarding the way land sites are being auctioned. A number of cases have come forward where land bought in auctions has been sold again delaying the hotel development process. Government should opt for one way – either leasing hotels or entering into build-operate-own agreements.

The move will also help to keep a close scrutiny over property prices.

News Published Under:   Delhi |

Comments