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Poonawallas drops Pune hotel plan

Poonawalla group’s foray into the Indian hospitality industry has been shelved.

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Poonawalla group’s foray into the Indian hospitality industry has been shelved.

Industry sources said that promoters of the Poonawalla group, the business conglomerate based out of Pune, have deferred plans to build their first five-star luxury hotel in Pune.

“I don’t think it’s happening anymore. Not a stone has been moved from the site identified for the hotel project. The Poonawallas do not seem too keen on getting into the hospitality business anymore,” said an industry source.

In December 2006, the Poonawallas signed a memorandum of understanding with the world’s largest hotel company by number of rooms, InterContinental Hotels Group (IHG), to launch their hospitality business foray.

To be managed under The InterContinental brand, the 200-room luxury property in Pune was to be operational in the first half of 2009.

An IHG official  said the project is being internally reviewed. In an email response to DNA, Tony South, chief development officer, IHG Asia Pacific, said, “We don’t comment on market speculation. India is a long-term and growth market for IHG and we continue our growth momentum with a robust pipeline. We remain committed to our partners and continue to work with them during this period of economic uncertainty.”

The chairman of Poonawalla group, Yohan Poonawalla, could not be contacted for a comment. Yohan’s father Zavaray Poonawalla, however, confirmed the news saying, “I am not in hotels. Yohan has shelved his plans.”

The current hospitality portfolio of the Poonawallas consists of two UK-based hotels in which they own majority stakes. One of them is Grayshott, a luxury spa at Surrey, while the other is a countryside hotel called Fawsley Hall located close to the Formula 1 racing track at Silverstone.Cashing in on the demand-supply imbalance in the city, a lot of new hotels were being planned in Pune.

A January 2009 hospitality industry report by global real estate consultants Cushman & Wakefield stated that Pune is expected to witness a supply of approximately 3,700-3,900 hotel rooms across 21 hotels in the span of next 3-4 years. Approximately 51% of this supply would fall in the upscale category followed by 43% in the mid-scale category.

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