Southern realty major Mantri Developers is firming up plans to foray into the hospitality sector. Mantri, which initiated talks with international hospitality firms earlier this year, is in advanced stages of negotiations with Hyatt for three hotel properties in south India, according to an industry source.
Mantri, according to the source, will take the management-contract route to operate luxury hotels in the country and is looking to partner with Hyatt for the same. When contacted, a Hyatt spokesperson did not comment on the development. In a bid to cater to the increasing demand for hotel rooms, Hyatt is seen exploring the possibility of operating multiple brands in a number of Indian cities, especially Bangalore.
The brand is expanding its footprint in the south with two Hyatt hotels already under development in Chennai (Hyatt Regency) and in Hyderabad (Park Hyatt), totaling over 450 rooms under construction. Hyatt currently operates three brands in the country Hyatt Regency, Grand Hyatt and Park Hyatt, covering five properties. These include two in Mumbai and one each in Delhi, Kolkata and Goa.
When contacted, Sushil Mantri, MD, Mantri Developers, refused to comment on a possible tie-up with Hyatt. “As part of our hospitality foray we intend to have six hotels operational, in the four-star and five-star categories, by 2010. To start with, we will construct hotels in Bangalore and Hyderabad.
Each would be a 200-room plus luxury hotel. We are to rope in a hospitality partner shortly,” he added.
According to him, the per room development costs across the luxury hotel properties would range between Rs 50-75 lakh and the same will be funded through a mix of internal accruals and debt.
The company plans to develop luxury hotel properties in the two cities. This apart, plans to enter the serviced apartments segment are also underway with the developer having begun talks with leading operators for a 200-room project in Bangalore.
Source: The Economic Times
Popularity: 2% [?]