The Hindu Business Line : Brigade Hospitality plans Rs 1,000-cr hotel projects

Project details
Of the three serviced apartment projects coming up, one would be part of an integrated township at Rajaji Nagar in Bangalore.
The township would also have in its precincts a 250-room hotel, which would be a tie-up with the Sheraton brand.

Bangalore June 18 Brigade Hospitality Services, the hospitality services arm of the Brigade Group, plans five hotel properties that would be operational by 2009-10. One of these would come up at Devanahalli near Bangalore.

"This would be an airport hotel with 250 rooms," said Mr Vineet Verma, Chief Executive Officer. Land is already available for this project.

The company would invest about Rs 1,000 crore on these five projects and three serviced apartment projects that are currently under construction, he said. Another property would be located at Mysore.

Serviced apartments

Of the three serviced apartment projects coming up, one would be part of an integrated township at Rajaji Nagar in Bangalore, which would house 130 apartments in a single block. The township would also have in its precincts a 250-room hotel, which would be a tie-up with the Sheraton brand.

About 135 serviced apartments would come up in Koramangala by this year-end partnering with an international tie-up for management, and another project would be located at Whitefields. Their existing serviced apartments have an occupancy rate of about 80 per cent, Mr Verma said.

He said that the company is also looking at options in Mangalore, Kochi, Chennai, Hyderabad, Coimbatore and Nagpur.

outlook

The hospitality industry, which is booming now, will undergo correction in the next few years, Mr Verma said. The year 2009-10 would be a judgmental one for the industry in Bangalore, as many hotels, under construction now, would come up then.

It is then that the demand-supply gap would reduce. The average room rate would also stabilise then, he added.

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