The Hindu Business Line : Bangalore awaits ITC Gardenia

WITH environmental clearance being given to its 230-room super deluxe seven-star hotel in Bangalore, ITC Hotels is now planning to set up two more properties in the metropolis. The total investment in the three projects is estimated to top Rs 1,000 crore.

In keeping with the tradition of Bangalore's reputation as the garden city of the country, the new hotel would be called ITC Gardenia.

Confirming that the 230-room project was under way, the ITC Ltd Executive Director, Mr Habib Rehman, told Business Line it was likely to be completed in the last quarter of 2008. The new property comes up after almost a 25-year gap in Bangalore, when the Windsor Manor opened in the city.

The group is also examining a proposal to set up a 500-room hotel in Frazer Town that would not only have retail and conference facilities but also service apartments and a viewing theatre for private screening of films.

Also on the cards is a plan to set up a deluxe retreat in the city's outskirts en-route to the airport. The decision to establish more hotels in Bangalore comes at a time when the city is reporting the highest average rate realisation (ARR) among hotels in the country. Currently, five-star hotels in Bangalore are reporting an average occupancy rate in excess of 85 per cent with the average per night tariffs being in the region of $250. Sources indicated that going by the company's balance sheet it was unlikely for ITC Hotels to raise any borrowing and the entire funding for the three properties would be done through internal resources. The new properties would come up on land already owned by ITC Hotels and form part of the five-year Rs 5,000-crore investment plan drawn up by the ITC Chairman, Mr Y.C. Deveshwar.

More Stories on : Karnataka | Hotels | Environment | I T C Ltd

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