Rahejas to enter hospitality sector with Indian Hotels

March 26, 2008	(Be the first to rate this story!)  Loading ...
Print This Story   Email This Story Subscribe Newsletter

Delhi-based Raheja Developers will foray into hospitality sector with the Indian Hotels Company. The realty player will develop six hotels in four years.

“While four of these will be business hotels in Four-Five-Star category, two will be budget hotels,” Navin Raheja, MD, Raheja Developers.

Rahejas will develop only one stand-alone hotel in Gurgaon while others will be part of their shopping complexes. The investment in the 300-room stand-alone business hotel will be to the tune of Rs 150 crore (excluding land price) with an additional cost of Rs 50 lakh for furnishing.

According to sources, the group has negotiated terms for a management contract with the Taj Group to develop two hotels — a 400-room business hotel in its mall in Gurgaon and another in Panipat.

Raheja’s mall in Panipat, built at an investment of Rs 100 crore, will house Taj’s budget brand Ginger. However, Mr. Raheja declined to comment on the development. Ginger does not have existing property in Delhi or NCR.

Its first property in the region will be operational by next month for which Roots Corporation, wholly-owned subsidiary of the Indian Hotels Company, had acquired Rail Yatri Niwas.

Roots Corporation and Ginger Hotels CEO Prabhat Pani said that they are in talks with real estate players to sign management contracts for their expansion, but declined to divulge the names of specific players.

“We are open to setting up budget hotels in malls as real estate commands exorbitant price today. We are also open to management contracts now as we already own few hotels,” added Pani. Ginger Hotels has a tie up (leasing arrangement) with Ansal API in Mohali and Amritsar and with Aerens in Ludhiana. Taj Hotels is part of the Tata Group.

News Published Under:   Real Estate India, Hotel Industry in India |

Comments