Prahladnagar, fast becoming the posh hub of the city, will soon witness the development of four- and five-star hotels with a capacity of 500 rooms by the end of this year. According to industry experts, with the increasing number of commercial properties and office complexes in the area, there will be huge demand for hotel rooms in its vicinity.
City-based Sankalp group which is known for its south Indian food joints is diversifying into real estate and hospitality. The company will launch its 96-room four-star hotel project in Prahladnagar in the next three months. The cost of the project is estimated at Rs35 crore and it will be managed by an international hotel chain.
“We will be launching the project by coming June. The idea to set up a hotel in this area is because of the surrounding commercial projects. In coming years there will be a huge demand for hotel rooms for which this is the most strategic location,”said Robin Goyanka, MD of Sankalp group. The company bought the property from Vishwanath Constructions and has tied up with Ramda group, an international hospitality chain for managing the project.
Like Sankalp, Savvy Infrastructure Ltd, another city-based realty group, will also be ready with a five-star hotel with 235 rooms. The under-construction hotel located in Prahladnagar beside SG Highway costs around Rs200 crore. The hotel has tied up with Crown Plaza — a US-based inter-continental group and will start by December.
Director of Savvy group, Jaxay Shah said because of SG Highway’s connectivity with Rajkot and Vadodara the flow of business travelLers along with others will grow gradually and therefore such hotels will be of great help to visitors.
“Also I believe that by the time new international airport at Fedra will be ready and it will infuse greater demand for star-category hotels. The flow of NRGs, NRIs and business travelers will increase who can be the potential beneficiaries.”
Another company official on the condition of anonymity said they have plans to build a four-star hotel in the same vicinity with around 100 rooms. Likewise, Parsvnath Hotels (PHL), a subsidiary of real estate major Parsvnath Developers is constructing a Rs 250 crore five-star hotel on 100-foot road and is expected to be completed by the year-end.
However, all these hotels will have to wait for three-four years to get proper returns as there are around 10 to 15 hotel projects that are expected to come up by 2011-2012. This may also bring tariffs down.
Commenting on it, chairman of Gujarat Hotel and Restaurant Association, Tulsi Tekwani said, “Initially the hotels may have to struggle to gain stability. But after a couple of years the market is expected to improve for the hospitality industry. The room tariffs of three-four and five-star hotels may fluctuate from Rs3,000 to Rs4,000 and Rs5,000 to Rs7,000 respectively.”
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