Adarsh Realty and Hotels, hospitality arm of Adarsh Group, will invest around Rs 600 crore to build a Shangri-La branded luxury hotel in Bengaluru, a top company executive said.
"The 370-key property, located in the IT hub of Bengaluru's Outer Ring Road, is expected to be completed in the next two years," Rajiv Seth, vice-president (hospitality) at Adarsh Realty and Hotels, told ET. The company will fund the project through acombination of debt and equity.
This will be the third Shangri-La hotel in the country and the second in Bengaluru. The first Shangri-La hotel opened in Delhi in 2005.
Adarsh Realty is already building a Shangri-La hotel, which is expected to open in May.
"Demand will definitely grow in the market even if the supply grows, as Bengaluru is not only an IT Hub but it is also becoming a manufacturing hub," Farhat Jamal, Shangri-La's area manager for India, said when asked about the rationale behind setting up two Shangri-La branded hotels in a market like Bengaluru, which has seen considerable supply addition in the upscale category. "Though the supply has almost doubled in the last four years, the market has done well."
Hong Kong-based Shangri-La signed a management contract with Adarsh Realty to operate three new hotels —two under the Shangri-La brand and one under its mid-scale brand, Traders Hotel, which was rebranded as Hotel Jen last year.
Shangri-La projects in Bengaluru have seen considerable delays owing to tough market conditions, said a hotelier requesting anonymity. "The developer was waiting for the market conditions to improve," the hotelier said, adding that the projects have been delayed by over two years.
When asked about the delay, Seth of Adarsh Realty said, "Delay is due to multiple reasons including technical and change of hotel plans". At a time when international brands are upping their ante in the country, Shangri-La has been unable to establish its presence in India, said an industry expert.
"Shangri-La has been very selective about the properties and the cities where it wants to be. Its projects have seen delays and its sudden exit from one of the marquee property in Mumbai reduced its portfolio in India."
Know More About MCHI-Thane
About Us
MCHI-THANE has always been very clear that fine housing complexes and shopping malls cannot stand in isolation. A great City is the sum total of great buildings, great infrastructure and great people. MCHI has been committed to growth of the real estate sector and is credited with the harmonious growth and rise in quality and standards of construction in Thane City in the past decade.
Its aim as an Association of Developers has been to seek rational rules and regulations which are uniformly applied across the board as this will to a great extent result in speedy construction, cost reduction, fair pricing and a push for better quality standards at par with the developed world, with a high level of transparency.
No comments:
Post a Comment