Hospitality majors, both domestic and international, are looking to expand their network in States in the east and north east of India due to demand for quality hotel rooms from this region.
These hospitality chains and their partners are vying for hotel projects as State governments are laying out the red carpet for prospective investors to set up hotels in prime locations to cater to the demand.
Odisha invites bids
Odisha, for example, has invited bids for development of 10 hotels in Bhubaneswar through an online auction. Of the 10 hotels, six would be in the Star category (3-star and above) and the remaining four would be in the budget category. This would an additional 715 rooms to the overall hotel inventory in the State capital.
“Keeping in mind the growing demand from tourists and sports lovers, we are creating a land bank of 1,000 acres to attract more investment in tourism,” said Sanjeev Chopra, Principal Secretary, Industries, government of Odisha.
“In a related initiative, we are auctioning 10 identified plots for construction of 10 new hotels in Bhubaneswar,” Mr. Chopra said.
‘Offset price set’
“The offset price of the plots has been fixed at Industrial Policy Resolution (IPR) rates. We are hopeful of attracting reputed national and international hotel players to participate in the auction,” he said.
Hospitality majors said that they were keen to expand in the region.
“We are keen to expand in this region through our partners. We are already present in 60 cities and will be happy to have hotels in Bhubaneswar and in the capitals of north eastern states,” said Raj Rana, CEO, South Asia, Carlson Rezidor Hotel Group.
In a recent interaction, Puneet Chhatwal, MD and CEO, Indian Hotels Company Ltd. (IHCL), which owns and operates the Taj brand of hotels, said the group would be expanding in under-served markets like the north east with upscale, mid-scale and budget hotel brands.
Santhosh Kumar, vice chairman, Anarock Property Consultants said, “The States in the north-east and east of India have the benefit of considerable natural beauty and great cultural heritage.
“As a result, these locations have always been on the radar of global tourists. With laser-focus development agenda of the government, large corporates are eyeing business opportunities in these States,” added Mr. Kumar
