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After Dasaprakash, another well-known hotel in Chennai – Hotel Atlantic, is all set to give way for residential apartments.
The 30-ground property in Egmore has been acquired by the city-based real estate developer Ceebros Property Development Pvt Ltd which plans to put up residential apartments.
Another property in MRC Nagar – built by the Hyderabad-based Viceroy Hotels for JW Marriott — will also be converted into residential apartments by Ceebros which has acquired it. The construction work on the hotel was stopped after it ran into coastal zone regulation issues. Then, the promoter company decided to exit the project as it planned to restructure its business operations to bring down debt. Ceebros acquired this property for Rs 480 crore.
According to C. Subba Reddy, Managing Director of Ceebros group, the company plans to convert this into top-end residential apartments. “We are weighing various options to convert the structure into residential apartments – either by altering it or by completely pulling it down,” he said.
To a question on why the company does not want to run a hotel, as Ceebros has exposure to the hospitality business too, he said, “It may not be commercially viable to run a hotel, as the city is already an oversupplied market.”
The trend started in 2010 with Dasaprakash Hotel, one of the oldest landmarks of the city.
The Chennai-based realty company Prince Foundations acquired this property for Rs 165 crore to put up a 150-apartment project in two towers of 17 floors each.
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