Financial Daily from THE HINDU group of publications
Monday, Jun 13, 2005
Industry & Economy
Real Estate & Construction
Marriott roped in for Pune convention centre
Pune , June 12
THE US-based hospitality chain Marriott has been roped in by ICC Realty Pvt Ltd, the SPV floated for implementing the Rs 360-crore International Convention Centre, promoted by the Mahratta Chamber of Commerce, Industry and Agriculture (MCCIA), that is coming up in Pune city.
ICC Realty has entered into a 25- year management contract with the Marriott to manage a 380 room hotel and a 2,800 seater convention centre which, when complete, will emerge as South-Asia's largest international convention centre.
According to information available, the Marriott property is being set up at an estimated cost of Rs 300 crore at the sprawling 14-acre campus which will have an IT park, trade towers and the convention centre. The trade towers and IT park is expected to be launched in October while the hotel will be soft-launched in the first quarter of 2008, Mr Atul Chordia, Managing Director, Panchshil, which is developing the project, told Business Line.
The Marriott joins a list of players in the global hospitality space who are setting up shop in Pune city.
The last couple of years have seen a huge influx of business travellers into the city which has put its limited hotel rooms under pressure.
The city's existing five starhotels Le Meridien, Sun n Sand and Taj Blue Diamond have only 500 rooms between them leaving visitors constantly starved of hotel accommodation.
Industry watchers maintain that the next couple of years could well change that with at least 600 plus five star rooms slated to be added across at least four new five stars that are in various stages of completion.
Pune city is also seeing action on the budget hotel front with at least half a dozen new economy hotels coming up in the next couple of years.
On the five-star front, the Runwal group has tied up with the Radisson chain for a 100 plus room five star, which is expected to be complete in an year-and-a-half.
Pune's airport road stretch, which is the arterial road to a number of IT and ITES hubs, will see a 250-room Hyatt Regency hotel promoted by Vascon Engineering in joint venture with the Jatias who run the Hyatt hotels in Mumbai and Delhi.
"The Rs 250-crore project will also have 75 service apartment," said Mr R. Vasudevan, Chairman, Vascon Engineering.
Mr Chordia, however, says that the demand for hotel accommodation will shoot up once the convention centre is operational.
"A full convention centre will mean that there is a short fall of 2,000 rooms in the city," he said.
A number of established players from outside are looking at the budget segment. The ICC Realty is constructing a 220 room service apartment in the campus for which it is looking for a tie-up.
Mumbai hotelier Mr Sanjay Narang is learnt to be firming up plans to bring his Gordon House brand of boutique hotel to the city.
Australian chain Accor is bringing its Ibis brand of budget hotels to the city while the Taj is planning its budget brand IndiOne at the Hinjewadi IT park.
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