The Hindu Business Line : Raheja Developers foraying into hospitality sector

New Delhi, June 10 Real estate company Raheja Developers is foraying into hospitality projects to develop five hotels in the next two years, including one where it would convert a commercial property into a hotel.

“We will develop commercial property into a hotel. We plan to assign our proposed hotels to reputed hotel chains for management and day-to-day running. The blueprint is to develop five hotel properties in the next 1.5-2 years,” Mr Navin M. Raheja, Managing Director, Raheja Developers, told Business Line.

These would be business hotels, five-star hotels and also budget hotels, he said adding that the projects would come up in and around the NCR region, in order to tap business travellers.

To start with, the company has begun converting its existing commercial project near Manesar into a hotel. “The long term returns are really attractive. The hotel has an area of 1 lakh sq ft and would have 134 rooms. It is likely to be operational in 6-8 months,” he added. Mr Raheja said the company was yet to work out the overall investment details for the five hotels in the pipeline. “We are in advanced stages of discussions with various hotel groups for management of these properties. However, we will retain the ownership of these properties,” he said.

In the past, realty companies have been making a beeline to tap hospitality opportunities with some of the largest names in the industry including Unitech and Parsvnath announcing ambitious plans. Unitech has already tied up with the world’s leading hotel chains, including Marriott, and also has a partnership with Carlson hotels.

Parsvnath Developers’ subsidiary Parsvnath Hotels Ltd (PHL) recently inked a memorandum of understanding with Fortune Park Hotels Ltd, a wholly owned subsidiary of ITC Ltd, to manage 50 hotels across India in the next three to five years. PHL has also formed a joint venture with Royal Orchid Hotels Ltd to develop and manage hotels across the country. The venture would develop 10 hotels with an investment of Rs 500 crore.

Engg SEZ

Asked about Raheja Developers’ plans for roping-in a strategic partner for its proposed engineering Special Economic Zone in Gurgaon, Mr Raheja said that talks were still on and the company was in discussions with 5-6 players. “We have received approval for the master plan and are in the process of getting approvals for authorised operations within the SEZ,” he said adding that the construction is likely to begin in 3-4 months.

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