Demand from NRIs, north Indian buyers keeps Goa’s realty mkt abuzz

The tiny coastal state of Goa, known to be the best remedy for one to distress, detox and recoup, has in recent years attracted lot of investment in  holiday homes by non-resident Goans (NRGs), non-resident Indians (NRIs) and domestic buyers mainly from north India.

While the coastal belt with a good ‘sea view’ is always in demand, people are also scouting for inner lands overlooking hills, rivers or valleys with proximity to the city.

For the first time, the state is also witnessing entry of major builders such as Pune-based Gera Developments, Mumbai’s Dynamix Group and Tata Housing and Delhi’s DLF Group and Parsvnath Developers.

So what’s triggering this real estate growth? Better quality of life, higher standard of living and good resale value, say market analysts. Earlier speaking to ET, Dinar Tarcar, proprietor, Landscape Developers, said: “people desire a good life,” which is prompting many from Delhi, Mumbai, Uttar Pradesh, Bihar and Madhya Pradesh “to look at viable options.” The demographic profile pointing to Goa to have consistently the highest per capita income and highest standard of living, is attracting people to the state. Moreover, owning a place in Goa has now become a style statement.

Property prices picked up in Goa in 2004. While many cities saw a decline with recession, in Goa, land prices have only stabilised, say developers. “In the cities, prices have not really fallen. Goa is land locked, which has kept the prices high,” said Dattaprasad Kamat, proprietor — Kamat Developers. While many new constructions are coming up, large-scale public protests against ‘mega developments’ have put many housing projects on hold, thereby hiking prices of land/projects unaffected by the agitation. Besides, many dealers who procured land at very high rates in the past few years are not willing to cut down prices.

Land value in capital Panaji has doubled in the last one year while other places across the state have seen a steady 20% increase. Nearly 75% of buyers in Goa continue to be second home seekers. “Economic meltdown has seen a 15% correction in land prices and this is unlikely to come down. If anything, prices in the interior villages will fall,” a real estate analyst said.

However, sources add that the realty market, which had seen a sudden influx of small-time developers from Delhi and Mumbai making for 25% of the sellers, are dropping rates and leading to ‘panic’ sales, while the seasoned reputed developers still prefer to hold on. According to them, with clear titled saleable land being scarce in Goa, prices will continue to remain high.

Presently Panjim is the most expensive place to acquire land. The average cost in Panjim rose from Rs 25, 000 per sq m to Rs 35, 000 per sq m, with prices ranging from Rs 50, 000-100,000 in Dona Paula and other water fronts.

Calangute and the northern coastal belt, comes a close second with the average price for a property being Rs 30,000 per sq m. Costs, however, increase with proximity to the sea. But head to south Goa, and you’ll probably get a better bargain. Prices here are said to be lower than northern coast with start up rate for a place near Colva beach between Rs 18,000 and Rs 22, 000 per sq m. Beaches in the north are abuzz with activities. In comparison, the coastal belt of southern Goa is known more for its picturesque locale.

Source : http://economictimes.indiatimes.com/Demand-from-NRIs-north-Indian-buyers-keeps-Goas-realty-mkt-abuzz/articleshow/5004637.cms

Pride Group of Hotels eyes Tier II cities for expansion

With an aim to have a wider presence in the Indian market, Pride Group of Hotels is now eyeing Tier II cities to expand its business hotel brand, Pride Biznotel. For the same, the company is considering cities like Surat and Rajkot in Gujarat; Mangalore, Coimbatore, Madurai and Kochi in south India. The hotel chain will operate properties under this brand on a management and marketing contract. A management contract has been signed for two Biznotels in Maharashtra.

A 65-room property is also under development in Delhi, which is expected to be launched by March 2010. There are plans to launch city centre business hotels in Jaipur, Agra and the National Capital Region (NCR). The two hotels in Maharashtra will be located in Nashik and Aurangabad. The 91-room property in Aurangabad will be launched by March 2010 while the 100-room hotel in Nashik will be launched by end of 2010.

The chain is developing its first five-star property in Mumbai, which will be operational by 2011. The 250-room hotel will be developed on a two acre area. S P Jain, Chairman, Pride Group of Hotels, said, “We had to rework our hotel designs as the property received an increased FSI of 3.5.”

The company will speculate on the market situation and demand and will explore the possibility to add 100 rooms after a year of operations. It will invest around Rs 200 crore in the Mumbai property. Besides this, the company has two other properties of 100 rooms each, under development in Alibaug and Goa, which will be ready by 2011. The Alibaug hotel will incur an investment of Rs 45 crore whereas the Goa hotel will incur an investment of Rs 55 crore. Plans are also in the pipeline to develop a 250-room five-star hotel in Delhi under the Pride brand. The company is also considering offers in Hyderabad for a hotel under the five-star segment.

Pride Group of Hotels aims to set up 30 hotels with 3,000 operating rooms by 2015 and aims to invest Rs 800 crore, during the same period. It has raised around Rs 55 crore through private equity, which was invested in its newly launched 100-room hotel in Bengaluru. There are plans to raise Rs 45 crore through the same route. It will also receive Rs 100-crore term loan from Kotak Mahindra Bank and Citibank. Remaining funds will be generated through internal accruals. Plans for an initial public offering (IPO) have been scheduled for 2010. There are plans to raise Rs 200 crore through the IPO.

Source : http://www.hospitalitybizindia.com/detailNews.aspx?aid=6149&sid=1

Alibaug

Zuri group to build villas in Goa

Zuri Group Global that runs hotels and resorts under the name Zuri is foraying into the real estate sector in Goa. It has plans to build a cluster of villas and apartments in the coastal state, a company official said here Tuesday.

‘While there were construction restrictions under the Coastal Regulation Zone norms, we recently got the nod to go ahead with our project,’ communication director Priti Chand of the Zuri Group Global said at a press meet here.

The company has already bought the land for Rs.200 crore and plans to invest Rs.200 crore more in the project to construct 150 villas and 100 premium apartments along with a golf course on 300 acres.

‘We plan to complete the project within the next 18 months,’ she said.

The Zuri Group, which is promoted by a consortium of investors based in Middle East, has four properties in India – Zuri Whitefield in Bengaluru, Zuri Kumarakom Resort & Spa in Kerala and two properties in Goa, the Zuri Varca White Sands Resort and the Zuri Retreat.

However, the group is now planning to venture into management of hotel properties owned by others.

‘We are in an advanced stage of finalising deals in Pune, Ahmedabad, Kolkata and for our second property in Bangalore,’ Chand said.

The hotel chain plans to have its brand present in four to five cities in the next three years. Each property would have an average capacity of 150 rooms, she added.

source: http://www.bombaynews.net/story/540450

Hospitality giant on land hunt for city address

KOLKATA: Zuri Hotels & Resorts a multinational conglomerate promoted by a consortium of investors from West Asia is scouting for opportunities in Kolkata. The company is open to contract management opportunities as well as setting up its own hotel in the city. The Zuri Group is into real estate, floriculture and hospitality with resorts and hotels in Kenya, the UK and India.

“The Zuri group sees tremendous potential in Kolkata and rest of the east. We are keen to be present in the hospitality sector here at the earliest. We are in talks with a couple of hotels on a possible management contract and use of the Zuri brand. If something does not work out within six months, we will look at a 1.5-2 acre plot in Kolkata proper to set up a 140-170 room business hotel. The investment will be around Rs 200-225 crore,” said Aditya Mata, general manager of the Zuri group’s flagship property in Kumarakom, Kerala. The group owns two other hotels in Goa and one in Bangalore.

The team currently camping in Kolkata to negotiate with potential partners is looking for a property with large banqueting facility to tap the marriage market. “Since marriages in Kolkata are elaborate, we want to get into the business. It’s a good money-spinner as well,” said Mata.

Incidentally, the company was looking for land in New Town and Rajarhat but developed cold feet after the Vedic land scam. “Land has become a hot potato. The thing that happened in Rajarhat was an eye-opener. We are now looking for a property in the central business district,” company spokesperson Priti Chand said.

Apart from Kolkata, the group is eyeing properties in Ahmedabad, Pune, Chennai, Nagpur, Visakhapatnam and Mysore. While three of the four hotels that the group has in India are resorts, the company is now looking at business hotels that have a shorter return on investment.

Meanwhile, city-based Gama Hospitality (GHPL) on Tuesday signed a master franchisee agreement with Global Franchise Architects (GFA) to launch four international brands Coffee World, Pizza Corner, The Cream & Fudge Factory and The Donut Baker in the eastern region. With an investment of Rs 52 crore, GHPL will focus on Kolkata in the initial phase this year.

“We intend to open 35 outlets in this part of the country in the next 18 to 24 months using up a cumulative floor-space of about 42,000 square feet. All the four brands should be in Kolkata by the end of this year,” Gama’s director Gaurav Agarwala said.

source :http://timesofindia.indiatimes.com/news/city/kolkata-/Hospitality-giant-on-land-hunt-for-city-address/articleshow/4988332.cms

Realty firms look at PE bailout for hotel projects

Realty majors, left with few avenues to fund their ambitious hotel projects, are now hoping for a private equity (PE) bailout. Developers like Parsvnath, Nitesh Estate and Brigade Group have kicked off negotiations with PE players to bail them out.

New Delhi-based Parsvnath Developers, for instance, recently prepared an information memorandum for the purpose. “We plan to raise money for hospitality projects but currently it is in an early stage of discussion,” said an official on condition of anonymity. The company has expressed its intention to focus on six projects in Hyderabad, Ahmedabad, Lucknow, Goa, Mohali and Shirdi.

“Banks are still a little averse to lending to the hospitality sector even though signs of economic revival are looking imminent,” said K Ramakrishnan, executive director & head, investment banking, Spark Capital.

Technopak Advisors’ principal consultant (hospitality) Tarandeep Singh said, “PE funds are currently more liquid than bank finance and many funds have past experience of investing in hospitality.” He added that there are around 15-20 PE players who are scouting for good bargains in the budget hotel segment.

PE players like S Sriniwasan, CEO, Kotak Realty Fund, say that the hospitality business in India is promising from a long-term perspective despite the current challenges. “Despite the capital-intensive nature and high cost of land, I think the hospitality business is very promising. The need for hotels is only going to pick up as the Indian economy grows,” Sriniwasan said.

According to data provided by Venture Intelligence, a research service focused on PE and M&A deals, in 2007 there were nine PE deals in hotel projects worth $343 million, and in 2008 there were 11 deals worth $246 million. So far this year, there have been five deals worth $74 million.

Arun Natarajan, founder and CEO of Venture Intelligence, said that its real estate and hospitality focused PE funds are looking at investing mainly in hotel projects. “These funds will try and replicate the global hotel management model in India. Under this strategy, it would either build a new hotel or buy an existing property and then strike a deal with hotel firms for branding,” he added.

Realty companies are looking at joint ventures as well as the special purpose vehicle (SPV) model to partner with PE firms. Some PE firms are also looking to buy out assets of distressed hotel projects. Duet India Hotels, a $166.5 million fund that is a part of Duet Private Equity (DPEL), which acquired Dawnay Day Hotels for $33 million last year, is in the hunt for distressed properties.

http://www.dnaindia.com/money/report_realty-firms-look-at-pe-bailout-for-hotel-projects_1288631

B’lore realtors scout Goa, Mumbai for new projects

MUMBAI: With the real estate sector story looking up in large parts of the country, Bangalore-based realty companies are now exploring options to  enter new markets. Among the interested players are Puravankara Developers, Sobha Developers and Nitesh Estates, three of Bangalore’s large real estate companies. It is learnt that these players are drawing up plans to invest in cities like Mumbai , Goa and Pune.

Provident Housing, a fully-owned subsidiary of the Puravankara Group, is said to be in talks with individual land owners in Mumbai to buy land in three locations for affordable housing projects. An industry tracker said Provident Housing is largely looking at western Mumbai for this venture. Ashish Puravankara , director, Provident Housing confirmed the plan to enter the Mumbai market through affordable housing projects though he declined to share details on locations. “We have not bought any land yet and are exploring options in Mumbai,” he said.

The cause for concern, according to analysts, comes from the fact that companies in the sector are highly leveraged. Purvankara , for instance, had a debt of Rs 582 crore on its books at the end of FY09 even as company officials maintained that the the debt-equity ratio at 0.56 was favourable.

Like Purvankara, Sobha Developers is also keenly looking at Mumbai and Pune. A source in the industry said that the company is close to sealing a deal with another developer for an affordable housing project. JC Sharma, managing director, Sobha Developers, when contacted said, “Mumbai is an attractive market and we are certainly interested in it though nothing concrete has been decided so far.” After a recent debt restructuring exercise, Sobha has reduced its debt from Rs 1,900 crore to Rs 1,450 crore. “We are at a comfortable position as far as debt is concerned,” he added.

Joining Purvankara and Sobha is Nitesh Estates which has already bought a large tract of land in Goa for a high-end project . “We would be developing higher end villas in Goa,” L.S. Vaidyanathan, Director, Nitesh Estates. The company is planning to raise around Rs 1,200 crore through an infusion of private equity (PE) funding and a planned public issue. Nitesh is also said to be interested in the Mumbai market.

The consensus is that money will not be easy to raise at a time like this. “It will be interesting to see how these companies arrange for the funds for these projects. While PE money is hard to come by, it will not be easy to take the capital markets route,” said a consultant at an international real estate firm.

Source : http://economictimes.indiatimes.com/News/News-By-Industry/Services/Blore-realtors-scout-Goa-Mumbai-for-new-projects/articleshow/4905366.cms

Ireo to invest $500m in Indian realty

The global investment fund Ireo announced its plans to invest $500 million in real estate projects across the country. The project mix will include both residential and commercial developments. The $500 million fo-rms part of the $2 billion tranche of fund available with the Ireo.
“We already have invested close to $1.5 billion towards development of 13 real estate projects in the country,” said Anurag Bhargava, chairman Ireo. He added that the company is now exploring options in tier I and II cities. “Residential projects will remain our priority though we are open to developing commercial projects like the SEZs,” Bhargawa explained.
The company has already completed three million square feet of residential development and has further plans to develop around eight million square feet residential and commercial pro-jects over the next one year.
At present, the company owns 3000-acre at Pune, Gurgaon, Mohali, Ludhinana, Ghaziabad, Noida, Chennai, Coimbatore, Goa and Jalandhar wherein it is developing thirteen realty projects that include development of IT-SEZ at Pune. The construction work of the IT-SEZ at Pune is expected to be complete by next year.
“Though the SEZs do not find favour with other developers in the changed economic environment, yet we feel that with right location and scale they still can be good business propositions,” quipped Bhargawa.
The company is also exploring options in the education and hospitality sectors. “The projects in these categories will largely be in and around the areas where we already are executing projects, as we have a fair amount of understanding of the market, he said.
The investor base of Ireo consists of several financial institutions such as JP Morgan Chase, TPG-Axon, Citadel Investment Group and sovereign wealth funds.

Source : http://www.mydigitalfc.com/companies/ireo-invest-500m-indian-realty-875

Parekh Group forays into hospitality sector

Mumbai-based Parekh Group, dealer in shipping and logistic services, has forayed into the hospitality industry by forming Seabird Resorts Pvt Ltd under its hospitality division. Parekh Group has also signed management contract with Alila Hotels & Resorts for its first property ‘Alila Diwa Goa’, which will be operational by September 2009. As mentioned by Hospitality Biz earlier, the upcoming project will be the first Alila Hotels & Resorts property in India. Parekh Group also has plans to develop properties in tier II cities in the western region.

Speaking about its new venture, Nirav Parekh, Director, Seabird Resorts Pvt Ltd, says, “Although, our core business is shipping and logistics, we have also dealt with infrastructure projects earlier. Hospitality is about infrastructure and services. We wanted to enter a business, which is not completely related to what we are pursuing currently. We have entered the market in the downturn period, but such a situation happens to every industry and is part and parcel of the business.”

Source : http://www.google.com/url?sa=X&q=http://www.hospitalitybizindia.com/detailNews.aspx%3Faid%3D4815%26sid%3D1&ct=ga&cd=IfeZ2hfnVB8&usg=AFQjCNF8EYST9yUGOHQtoSrbWj7srMmu8g

Peninsula Delays Hotel Project

Peninsula Land Ltd, a unit of the Ashok Piramal group, is deferring its plans to build business hotels by at least six months to preserve cash, a company official has said. In May last year, Peninsula forayed into the hospitality sector with a joint venture with textile maker and real estate developer, Arrow Webtex. The JV planned to build hotels in Mumbai, Pune, Nagpur, Nasik and Kolhapur in Maharashtra. There were also plans to develop hotels in Ahmedabad, Surat, Jamnagar, Mundra port, Goa and Kerala. “Currently, all outside initiatives are on hold. We do not think it is prudent to diversify rather than executing our current projects. We will look into new projects in the second half of this year when we expect markets to go up. It is more important to preserve cash in the downturn,” said Rajeev Piramal, executive vice-chairman, Peninsula Land.

Real estate developers such as DLF, Parsvnath and Unitech are also going slow on their hotel plans due to tough credit environment and fall in occupancy rates. DLF, the country’s largest property developer, is said to be pushing back its hotel plans by 12-18 months, another Delhi-based realtor Unitech, has sold its Gurgaon hotel to reduce its debt burden. “Land values are not attractive and still there is more scope for correction to launch these projects,” said Piramal. Peninsula and Arrow Webtex were to create a special purpose vehicle (SPV), where they would hold 50 per cent stake each. In the first stage, the JV was to invest Rs 100 crore and build 10 hotels of 100 rooms each, aggregating 1,000 rooms.

Peninsula is also putting its plans to get into new areas such as project management, infrastructure and others on the backburner to save cash even as it is expanding into new cities such as Nasik, Hyderabad and Pune this year, amounting to 8 million square feet. Peninsula is also looking at alternative options such as fund structures wherein capital is pooled in from different parties and invested in real estate projects as it is yet to close its Rs 1,400-crore Paramount offshore fund floated earlier.

The company is expecting nearly Rs 2,000 crore cash flows from its Mumbai projects mainly from the Peninsula Business Park project in Lower Parel area of Central Mumbai and from the Peninsula Technopark project in Kurla, which has been sold to the Essar group wherein it is yet to get full payment due. The company posted 49 per cent increase in its profit after tax to Rs 35.96 crore for the fourth quarter of FY 2009 as compared with Rs 24.06 crore it posted in the corresponding quarter of the previous financial year.
Source : http://www.indianrealtynews.com/real-estate-developers/peninsula-delays-hotel-project.html

Alila Hotels & Resorts to open 12 hotels in India by 2015

Singapore-based Alila Hotels & Resorts plans to foray into the Indian market with its first property in Goa, Alila Diwa Goa by September 2009 and another property in Bengaluru by July 2010. These properties will be managed by Alila Hotels & Resorts. The company plans to open 12 hotels in India by 2015, focusing on getaway destinations. It is in discussion with developers to manage properties in Calicut and Kochi, Kerala.

Speaking exclusively with Hospitality Biz, Mark A Edleson, President, Alila Hotels and Resorts says, “We will focus on key destinations to open resorts and hotels that target business and leisure clients. India is a major target country and we see huge opportunity and potential in this market. Since, we are launching our hotel in a new country we need to understand the market, human resources and clientele. We are also looking for properties in Bengaluru and Jaipur.”

With the Alila Diwa Goa, property owner Parekh Group has announced its foray into India’s hospitality sector. Located in South Goa,

Source : http://www.hospitalitybizindia.com/detailNews.aspx?aid=4533&sid=1

Mumbai-based Litolier opens Five-Star Hotel in Delhi

Mumbai-based Litolier Group, which opened a boutique hotel ‘Ramada Plaza’ here Friday, said it would enhance its presence in the hospitality sector by building two more five-star properties in next few years. The group will develop two hotels in Mumbai and Goa under a joint venture with a foreign hospitality major. “The Mumbai hotel will be on the Andheri-Kurla road near the airport,” Litolier Group director Ashok Mittal told reporters.

“We are in talks with several foreign five-star chains, but nothing is finalised yet. The land for the Goa property has already been acquired,” he added. The group plans to build both properties under an equal-partnership agreement. The 419-room Ramada plaza, built at a cost of over Rs.100 crore, stands where the erstwhile Ashok Yatri Niwas stood-once owned by India Tourism Development Corp (ITDC). The property was divested by the government in May 2002 and purchased by promoters of Litolier group for Rs.45 crore. The Ramada brand belongs to Wyndham Hotels, one of the world’s largest lodging franchiser.

Source : http://www.indianrealtynews.com/hotel-industry/mumbai-based-litolier-opens-five-star-hotel-in-delhi.html

Amari Hotels eyes India

Thailand-based hotel chain, Amari Hotels is now looking to expand its market. The company is eyeing potential South Asian markets including India for property development under its brand. The company aims to enter the Indian market for (development) by 2010. Presently, it only aims to focus on market study.

Speaking with Hospitality Biz about the company’s India plans; Peter Henley, President and CEO, Amari Hotels, states, “We are considering development in the country. Although, the company is presently in its initial stages of market analysis, we are considering certain potential locations like Mumbai, Delhi and Goa.” The chain’s Thailand properties receive a large number of Indian travellers. “After experiencing our services at Thai properties, our existing Indian clientele urged us to venture into this market and consider hotel development here,” Henley adds. In India, the hotel chain plans to develop hotels in the mid market segment, three and four star category and tap both, the business and leisure client segments.

While the company owns all its properties in Thailand, it plans to primarily use the management route for its expansion beyond its country. “Like most management companies, we are nervous about investing in markets abroad,” Henley adds. However, the hotel chain is open to joint venture opportunities.

Presently, the hotel chain is in the process of redeveloping its business plan. It primarily operates five and four star properties with large room inventories under its Amari brands in Thailand. However, before foraying into new markets, the company plans to expand its brand portfolio by introducing new brands into the full service mid market and upscale categories, along with limited service hotels. It is also considering properties with extensive meeting rooms and convention facilities in future developments. The new business plan is expected to be complete and launched by end 2009.

Source : http://www.hospitalitybizindia.com/detailNews.aspx?aid=4351&sid=1

Goa Top FDI Receiver

Who would have thought that the tiny west coast Indian state of Goa, known for its sunny beaches and laid-back lifestyle, would become the top FDI earner in the country? If some latest information placed before the Indian parliament is to be believed, that’s exactly what happened during 2008 even as the world was starting to reel under a major economic slowdown. The Minister for Overseas Indians Affairs, Vayalar Ravi, recently informed the Lok Sabha (the lower house of the Indian parliament), that the global recession had no impact on Foreign Direct Investments (FDI) from Indians abroad as it has registered a rise in the current fiscal.

Informing the lawmakers about investment figures from the states, Ravi said there had been no decline in investment due to global recession during 2008 as compared to 2007. Non-resident Indians (NRIs), Persons of Indian Origin (PIO) and Overseas Corporate Bodies (OCB) accounted for FDIs and Foreign Technology Cases (FTC) worth Rs 700 m during January to September 2008 in comparison to Rs 658 m for the period January to December 2007. Interestingly, Goa figured as the highest investment attracting state receiving Rs300m from the above mentioned categories of investors during 2008. West Bengal came in second among all Indian states, recording Rs203m in Foreign Direct Investments (FDIs). Goa was liberated from Portuguese rule in 1961 and went on to become the 25th state in the Indian Union in 1987.

People worldwide know Goa as a tourists’ paradise blessed by silvery and pristine beaches, historical temples and churches and a place of peace-loving people who cherish communal harmony. Very few would, however, fancy that Goa is today turning into a fast developing economy. The state has been ranked among the leading states on the developmental scale by national magazines. Goa’s economy is growing at a faster rate than that of the country as a whole. The Goan economy traditionally hinged on mining, Gulf remunerations and now on service sector mainly tourism.

It was ranked the best placed state by the Eleventh Finance Commission for its infrastructure, ranked on top for the best quality of life by National Commission on Population based on the 12 Indicators, placed in top three states in India for high rate of literacy and low rate of infant mortality and declared the second fastest growing state by CRISIL. Goa has been on the lookout to attract investments armed with a pro-active industrial policy, which identified biotech, food processing, agro-based industries, IT and IT-enabled services and entertainment sector as core areas of focus. After the State was declared a permanent venue for prestigious International Film Festival of India (IFFI), the entertainment industry led by state-owned Entertainment Society of Goa (ESG) is bringing entertainment to the forefront as a significant revenue generating sector.

At present, real estate seems to be the state’s top draw when in comes to investment by NRIs and PIOs. The new phase of real estate development in Goa has encouraged a multitude of investors to put sums of money. According to real estate experts, the prospects of real estate investment in Goa are bright. The strategic location of Goa and the availability land at good locations has attracted real estate developers. In recent years, Goa has also attracted huge investment for holiday homes by non-resident Goans (NRGs), NRIs and domestic buyers. According to The Times of India, real estate prices had boomeranged by 30 percent in 2004, and had been steadily increasing. Land value in Panaji doubled in the last one year while other places across the state have seen a steady 20 percent increase.

Nearly one in every four buyers in Goa were second home seekers looking for a good investment option. Real estate experts say that most property buyers in Goa are high-end clients looking for a villa ranging between Rs8m to Rs10m. NRIs and persons of Indian origin have particularly evinced interest in buying property here and constitute 15 per cent of the demand.

http://www.indianrealtynews.com/fdi-india/goa-top-fdi-receiver.html

Alila Hotels To Open 6 Properties This Year

Alila Hotels and Resorts is set to expand its footprint in Asia with six new properties slated to open this year, which will include the launch of three Alila Villas properties, the new generation of resorts that deliver ultra luxury in design, space and bespoke hospitality combined with innovative lifestyle concepts.

“These upcoming properties represent a significant milestone in the growth of Alila in both established and emerging destinations across the region,” says Frederic Flageat-Simon, Managing Director and Chief Operating Officer of Alila Hotels and Resort.

The six new properties will expand Alila’s existing presence in Indonesia and Thailand, as well as mark the group’s first venture into the Maldives and India. They include:

Alila Villas Uluwatu, Indonesia—a spectacular resort designed by award-winning WOHA Architects, located along the southernmost coast of Bali on the Bukit Peninsula. It offers clifftop resort living with panoramic views over the Indian Ocean. This will be the debut of Alila Villas, come June 2009.

Alila Villas Hadahaa, Maldives—located on a remote tropical island in the North Huvadhoo Atoll. Designed by SCDA Architects, its beach and water villas capture the ultimate Maldivian experience of tranquility and space. The resort’s very own dive centre will offer unique diving experiences in the region’s unexplored waters. Alila Villas Hadahaa will open in July 2009.

Alila Hansar Koh Samui, Thailand—a stylish beachside resort located along the picturesque Bophut Beach. A fusion of contemporary Thai design and luxe comfort, complete with destination dining and spa wellness heralds Alila’s entry into this popular holiday island in third quarter of 2009.

Alila Diwa Goa, India—sited on the beautiful Majorda Beach in south Goa, the resort fuses traditional architecture with understated elegance, tastefully complemented with varied options and recreational zones for family activities. A strong wellness component is evident in the living concept with emphasis on local culture and environs as can be seen in its destination dining restaurant and show kitchen. The resort with its comprehensive event centre will open in September 2009.

Alila Villas Soori, Indonesia—luxury residences right along the southwest coast of Bali, near the island’s famous Tanah Lot Temple. Designed by award-winning SCDA Architects, its vibrant mix of spaces for living, relaxation and spa wellness embrace Bali’s unique balance of tranquility and vitality. Surrounded by a stunning landscape of verdant rice terraces and stretches of beautiful black-sand beach, this villa resort will open in November 2009.

Alila Hansar Bangkok, Thailand—combines ultra-luxe residences and intimate boutique hotel services in the heart of the Thai capital. Its mix of urban sophistication, new-age lifestyle concepts and high-tech business lofts will make Alila Hansar Bangkok one of the premier meeting places for business and leisure in the city. Opening in last quarter of 2009.

Alila’s reputation for design innovation and warm hospitality encompassing fine living, dining and wellness into rich destination experiences has hit the high note with many discerning travelers. Its commitment to minimizing its impact on the natural environment and helping local communities has already seen several of its hotels achieve the prestigious Green Globe certification.

With Alila Villas, the company introduces a new generation of exclusive timeless properties, developed in some of the most naturally spectacular locations. Designed by award-winning architects and crafted by artisans, Alila Villas will offer an unprecedented level of private space, personalized hospitality and culturally enriching destination and lifestyles experiences for its guests.

The opening of these six properties will double Alila’s current portfolio of hotels and resorts, which are Alila Ubud, Alila Manggis, Alila Jakarta and Kemang Icon by Alila in Indonesia, Alila Cha-Am in Thailand and 3 Nagas by Alila in Laos.

Meanwhile, Alila is also presently developing hotels and resorts in China, Oman and the Gulf region.

Source : http://www.hotelsmag.com/article/CA6639962.html?industryid=47562

JLLM Releases ‘India30 – Real Estate Opportunities in Tier III Cities’

With the release of ‘India30 – Real Estate Opportunities in Tier III Cities’, Jones Lang LaSalle Meghraj decisively answers the recurring question in investor circles today – Is the Tier III city story over, or is there comeback sequel?

The answer is a resounding ‘Yes!’ This latest report from Jones Lang LaSalle’s World Winning Cities Research sets out to provide fresh insights into the long-term real estate opportunities and risks across India’s Tier III cities.

What makes these cities tick, and what will keep them ticking when others are facing the prospect of a protracted period of stagnation?

“This is not a simple question to answer, but we have attempted to do so in this report,” states Anuj Puri, Chairman & Country Head, Jones Lang LaSalle Meghraj. “In any given city, the factors that influence real estate growth are diverse and complex. To arrive at a uniform and non-ambiguous model of ‘real’ time potential, we arrived at three control points for this study – infrastructure, human capital and governance. These factors are best suited to reflect growth amongst any city.”

‘India30 – Real Estate Opportunities in Tier III Cities’ showcases 30 cities – the India30 – which Jones Lang LaSalle Meghraj identifies as the focus of new real estate activity outside of India’s major metros over the next decade. The India30 will set the benchmark by which other Tier III cities will be measured.

Included in the report is a unique Real Estate Opportunity Map, which provides a high-level summary of the research and analysis of macro-economic parameters, real estate fundamentals, future growth drivers and risk profiles across the India30.

“We have short-listed 10 Tier III cities which offer the strongest real estate potential combined with lowest market risk”, states Mr. Puri. “Five cities stand out – Ahmedabad, Chandigarh, Kochi, Jaipur and Nagpur. This group already have rapidly growing real estate markets due to their city size, market reach and connectivity.” A second group of mainly southern Indian cities – Coimbatore, Mangalore, Thiruvananthapuram, Visakhapatnam and Goa – also score well and have growing consumer markets.

With ‘India30 – Real Estate Opportunities in Tier III Cities’, Jones Lang LaSalle makes a strong case for these cities which, led by proactive visionary governments which invest in infrastructure and education, will be best positioned to succeed in the immediate and long-term future.

Source : http://propertybytes.indiaproperty.com/?p=3247

The Leela Palaces & Hotels & Resorts join the chain leaders at IH&RA

GENEVA – Dr. Ghassan AIDI, president of International Hotels & Restaurants Association is happy to announce that The Leela Palaces and Hotels and Resorts join IH&RA during the board meeting of Global Hotels Alliance in Leela Bangalore today. The Leela Palaces and Hotels and Resorts is one of India’s finest luxury hotel groups with properties in Mumbai; Bangalore; Goa; and Kovalam, Kerala and provides discerning business and leisure travelers a warm, memorable, and relaxed stay with 5 more properties to be opened this year and next year.

“We are proud that this year Leela joins us and joins chain leaders at IH&RA. With their properties, in addition to Hotels Association of India and two other institutes and Hospitality Colleges, India now is well represented at IH&RA. Leela is a synonym for luxury in India,” said Dr. Aidi.

The Leela Chain of Hotels under the leadership of its chairman Captain CP Krishnan Nair and the vice-chairman Mr. Vivek Nair has a philosophy in the management of their hotels where they consider that their guest is God. Taking a leaf from the Indian ancient Vedic scriptures, The Leela Chain is improving their services and facilities to serve their guests in the best way and providing luxury properties and personalized services to meet the demands of 21st-century guests.

International Hotels and Restaurants Association is working actively this year to start certifying its hotels members for sustainable development and Leela Management recognizes the need for responsible energy management and is committed to improving efficiency and protecting the environment. Their initiative has won them various national and international awards.

Vivek Nair, Leela’s vice-chairman, said, “Our Economy will continue to expand, albeit more slowly in the next couple of years, and just like the United States, we will bounce back very quickly from the last events in Mumbai.”

The International Hotels&Restaurants Association (IH&RA) is the only private association representing the private sector since 1945. Recognized by the United Nations as “the voice of the private sector in hospitality” and established in Paris in 1946 then moved to Geneva in 2008, IH&RA is moving towards the next generation. Its members include more than 200,000 hotels and millions of restaurants worldwide.

Source : http://www.forimmediaterelease.net/pm/2166.html

Hyatt Corp in JV with Emaar MGF to build hotels in India

NEW DELHI: US-based hotel chain operator Global Hyatt Corporation announced a 24:76 joint venture with property developer Emaar MGF for buildingsix hotels in India by 2013. The two partners will jointly invest about Rs 1,000 crore(~$200 million) to build these hotels under the mid-market brand Hyatt Place.

Besides picking a minority stake in a JV with Emaar MGF, Global Hyatt has signed management contracts with different individual property developers for another 14 hotels under its premium brands-Park Hyatt, Grand Hyatt and Hyatt Regency. Under the management contract, the real estate developer sets up the hotel and the hotel operator charges a management fee from the real estate developer to manage the hotel.

Global Hyatt Corporation global head-real estate & developments Steve Haggaerty said, “We will spend about $ 200 million on six hotels jointly with Emaar MGF. This investment would be a mix of equity and debt and we are in the process of raising the debt component.”

He added that Global Hyatt Corporation on its own will invest $20-25 million as equity into the six hotels to be located in Gurgaon, Hyderabad, Mysore, Lucknow, Indore and Mangalore. These hotels will add upto 950 rooms with the first hotel planned to open by 2011.

“We have also entered into management contracts with several local real estate developers to open 14 hotels with an inventory of over 3,000 rooms by 2013,” said Global Hyatt Corporation senior vice president-South Asia Ratnesh Verma. These premium hotels will be build in cities such as Kolkata, Hyderabad, Mumbai, Chennai, Goa and Pune.

Talking about the impact of the global economic slowdown, Mr Haggerty said that occupancies and demand has softened at its existing five hotel properties in India.

“There are concerns about how several real estate players that entered the hospitality sector have scrapped their plans and delayed their projects. However I would like to assert that under our JV with Emaar we have already acquired land for the six hotels and construction for the other 14 hotels is in various stages,” he added.

Source : http://www.indiarealestateblog.com/?p=2333

Lemon Tree Dials in for Expansion

The mid-scale hotel chain Lemon Tree plans to add 11 more properties across the country in the next two years, taking the total number of hotels and resorts to 20 with an investment of Rs. 12 billion across 15 cities in India, not including the possibility of handling a 9-hotel project with DIAL for which it has bid recently

“The group would add an inventory of 1,700 rooms in the 11 new hotels to take the total room strength to 2,500 from the existing 800 rooms,” Lemon Tree Hotels Chairman and MD Patu Keswani said.

“The Current economic turmoil and ongoing slowdown of the Indian economy is short term in nature. Reduction in demand for hotel rooms is therefore fundamentally temporary. Demand for rooms will rebound by 2010. At the same time, new supply of hotel rooms will be significantly below that which was envisaged just 6 months earlier due to this deflation in demand and the tight liquidity conditions in the market,” said Keswani in a release.

After the recessionary bells started ringing, the hotels have generally maintained a low profile with realtors postponing or cancelling almost all the new projects.

The company plans to invest Rs. 12 billion in 15 major cities in India, including South Delhi, Gurgaon, East Delhi, Pune, Goa, Alleppey, Indore, Aurangabad, Mumbai, Bengaluru, Hyderabad, Chennai, Jaipur, Chandigarh, Shimla and Ahmedabad

It has opened three new hotels at Ahmedabad, Aurangabad and Indore with a total inventory of 300 rooms since October, 2008. with an investment to the tune of Rs 830 million. It already had two hotels in Gurgaon, one in East Delhi, a resort each in Goa and Kerala and a hotel in Pune.

It will open its first Red Fox brand of economy hotels in Jaipur in October 2009 to be followed up with properties in Delhi in December 2009, and Hyderabad in April 2010.

Lemon Tree was one of the four bidders for the Delhi International Airport (DIAL) project, involving commercial development of 12 plots spread across 45 acres of land , including nine for hotels around the Delhi airport. Big real estate and hotel companies have not participated due to low business sentiment. US-based real estate investment fund Starwood Capital, which has invested in some hotel projects in the country, is the lone financial investor to have participated in the auction.

Source : http://www.indianwineacademy.com/item_7_275.aspx

Lemon Tree plans to invest Rs 1,200 Crore

Lemon Tree Hotels is mulling over an investment plan of Rs1,200 Crore to set up a pan-India chain of hotels. As per the capex plan, the company intends to have 20 hotels aggregating 2,500 rooms by 2011. There will be hotels coming up in 15 major cities in India, including South Delhi, Gurgaon, East Delhi, Pune, Goa, Alleppey, Indore, Aurangabad, Mumbai, Bengaluru, Hyderabad, Chennai, Jaipur, Chandigarh, Shimla and Ahmedabad. The funding for these projects will be a mix of equity and bank debt.

Currently, Lemon Tree Hotels has nine properties across India in the mid-price segment and the other ten properties are under development. The Chennai hotel will open in February 2009 while the two hotels in Bengaluru, one in Electronic City and the other on St Johns Road, will open by end-2009 and by June 2010 respectively. The hotel at Hyderabad will open in 2010.

Source : http://www.hospitalitybizindia.com/detailNews.aspx?aid=3054&sid=1

Hyatt plans to open 10 more hotels in 5 years

Global Hyatt Corporation, one of the world’s leading hospitality companies and the owner of the Hyatt brand, has said it aims to triple the number of hotels in India to 15 in the next five years.

The Chicago-headquartered company, which currently operates five hotels in India under the Hyatt Regency, Park Hyatt and Grand Hyatt brands in Mumbai, New Delhi, Goa and Kolkata, said it will also introduce two-three more brands in the country.

Its global brands such as Hyatt Place, Hyatt Summerfield Suites and Andaz will make its way to the country’s Tier-I and -II cities. “Our aim is to penetrate more cities in India while introducing more brands here. We will triple our hotel count in the next five years. Since our focus is of long term, we see our business here growing robustly,” said Harmit Singh, chief financial officer, Global Hyatt Corporation.

Most of Hyatt’s future properties will either be completely managed by the company or partnered with a hospitality player, he said. “We will preferably go in for more of a management control structure and less of a partnership module,” Singh told Business Standard.

When asked if the current economic slowdown will be impacting the company’s expansion plans in India, Singh said Hyatt was feeling the impact of the downturn in the form of liquidity squeeze but ruled out any deceleration in the ongoing projects in the country.

Currently, Hyatt, along with DB Hospitality — the hospitality arm of Mumbai-based real estate company DB Realty —, is building a 70-storyed luxury hotel in south Mumbai at a cost of more than Rs 1,000 crore. A letter of intent has already been signed between the two companies. The tower, managed by the Park Hyatt brand, is set to become India’s tallest building.

Construction of the tower, which will overlook the Arabian Sea, has already begun and the luxury hotel will commence operation in early 2012.

The Hyatt and DB Hospitality combine is also constructing a second Hyatt hotel in Goa. The 320-room 5-star hotel is expected to start operations by December next year. Hyatt already runs the Park Hyatt in Goa, situated near the Arossim beach.

Meanwhile, in the wake of the recent terror attacks in Mumbai, Hyatt has upped the security arrangement in all its hotel properties across the country. The company is currently working with local authorities to increase surveillance activity. It has also formed a contingency and response team to tackle any unforeseen events.

Source : http://www.business-standard.com/india/news/hyatt-plans-to-open-10-more-hotels-in-5-years/00/26/343592/

Unitech Plans to Invest 2,500 Cr in Hotel Industry India

Realty major UNITECH LTD (BSE:507878) plans to invest about Rs 2,500 crore (US$508 million) to develop 35 hotels across India over the next seven years. Unitech managing director Sanjay Chandra said the firm would develop 35 hotels in the next six to seven years and already had land in many cities at prime locations.

The hotels would be located in the national capital region (NCR), Kolkata, Chennai, Goa, Mysore, Bangalore, Hyderabad, Chandigarh, Siliguri and Assam.Of the total planned hotels, about 50 per cent would be located in Kolkata and the NCR, Chandra said.

Source :  http://www.indianrealtynews.com/hotel-industry/unitech-plans-to-invest-2500-cr-in-hotel-industry-india.html

Buyers hesitant to take the plunge

A weak sentiment and constant negative commentary have aggravated the problems of affordability and high mortgage rates in real estate, according to Motilal Oswal Financial Services Ltd.

A report by the company, based on an interaction with international property consultants, states that buyers are shying away from new projects and those under construction if delivery times are more than a year away. They feel that prices could drop further in the medium term and they are not sure if the developers would have the ability to stick to schedules. So presales, an important source of funds for developers to meet construction cost, is under threat.

List prices are no longer relevant as developers with projects in the pipeline and those that have been announced offer discounts of 30-50 per cent on listed price. They do not lower prices officially because they do not believe this would attract more buyers but would only aggravate the situation by making people wait for a further cut. A few leading developers such as Orbit Corporation and Oberoi Construction have dropped list prices, according to the report.

Property consultants felt that the outlook for real estate companies has worsened in the last few months along with their financial condition and were hesitant to give estimates of the possible time for recovery. But it is possible that the residential businesses could stabilise by March 2009 with some deals happening then.

The residential real estate prices are likely to realign with the present market situation by then and stimulate demand from end-users.

The property consultants expect demand to start improving first in Mumbai, Bangalore, Hyderabad, Delhi as the pent-up demand is higher in these cities. This will be followed by strong Tier II and Tier III cities such as Ahmedabad. However, any significant improvement in demand is not expected in the next few quarters.

Financial year 2009 is likely to be one of consolidation with industry leaders differentiated from peers. Developers with staying power will utilise this consolidation phase to emerge stronger and position themselves in an advantageous manner to capitalise on the growth phase post-consolidation. Focus should be on companies with high visibility on monetisation of assets over the next 3-5 years; low leverage and robust financials; and strong execution track record.

Tier II/III cities hold potential

Pension funds can exploit the relatively stable realty markets in India to park their funds, according to Jones Lang LaSalle Meghraj.

A report by the international property consultants says that with $20 trillion in assets, pension funds worldwide are the largest category of any investments. These can look at realty investments in India where the market is less volatile and property consistently priced making it an ideal investment option for prudent investors.

India’s Tier II and III cities rank higher than those of China’s, indicating less diversity in transparency within India. This is a reassuring factor for investors seeking to enter India’s secondary and tertiary cities.

The levels of transparency in Tier II cities are only marginally below Tier I cities. In the Asia-Pacific region investors may find greater reassurance in investing in smaller cities in India than in other countries.

According to the international property consultant, of the total domestic and foreign investment of $6 billion announced in India in the first half of 2008, over 63 per cent is in Tier I cities and 33 per cent in Tier II cities and the balance in smaller location. In 2007, Tier I cities accounted for over 95 per cent of the total investments.

In Tier III cities there have been investments in IT parks and SEZs in Nagpur, Kochi and Jaipur; retail in Ahmedabad and Chandigarh; hotels in Goa and Jaipur; and mixed development in Indore and Visakhapatnam. — Our Bureau

Source : http://www.thehindubusinessline.com/iw/2008/11/30/stories/2008113050691700.htm

Fast growing retail markets

India has six of the 10 fastest growing retail markets in Asia, with Linking Road in Mumbai the most expensive retail high street in India, according to ‘Main Streets Across the World’, an annual report by Cushman & Wakefield.

The survey, covering 236 locations in 48 countries carried out in June 2008, puts Linking Road, Mumbai, as the fifth most expensive location in Asia, and among the top three locations globally to witness the highest annual growth in rental values.

The press release from Cushman & Wakefield also strikes a note of caution. The third quarter of 2008 was significant for the retail real-estate sector as many established locations saw some decrease in value in mall and high streets.

In the last two years the rentals have grown faster than business potential, which hits rental sustainability. Though the domestic locations are positioned high in global ranking as on June 2008, Linking Road and other markets have felt the market pressure in 2008 and rentals have dropped by about 20 per cent during the third quarter. In the short run, retailers are likely to go slow and rental values could drop further.

India realty expo in Dubai

The Maharashtra Chamber of Housing Industry plans to showcase major real-estate projects in West Asia through the 11th India Realty Expo 2008 to be held in Dubai between November 27 and 29.

A press release from MCHI said the expo hopes to attract NRI investors to look at housing, commercial and retail investment options in real-estate in India. Over 25 developers, including Godrej Properties, Hiranandani Constructions, Tata Housing Development and Sunil Mantri Realty, will showcase their projects spread across cities such as Mumbai, Thane, Navi Mumbai, Panvel, Pune, Bangalore, Goa, and Nagpur.

According to MCHI, it is an ideal time for NRIs to invest in India as the prices are attractive and the depreciation of the Indian rupee against the US dollar will give them 20 per cent more value.

The forthcoming exhibition in Dubai is being attended by prominent developers, who had their projects in almost all the categories such as IT, ITES, Retail, Entertainment, Banking, Financial, Hospitality, Education and residential properties to suit all budgets, ranging from Rs 4 lakh to Rs 2 crore and more. The event is expected to see substantial investments from Indian and overseas companies. —

Source : www.thehindubusinessline.com

Bharat Hotels to spend Rs1,200 crore on expansion

New Delhi: The family of Lalit Suri, a home-grown Indian hotelier who died two years ago, plans to invest Rs1,200 crore in adding 10 hotels to its chain and refurbishing seven properties over three years after a franchisee deal with InterContinental Hotels Group Plc. ends for its Delhi and Srinagar properties in 18 months.
Bharat Hotels Ltd, the family-controlled firm, has re-branded its properties here The Lalit, a name that will be used for the company’s hotels in Mumbai and Goa after the contract with Intercontinental expires, Jyotsna Suri, chairperson and managing director of the firm, said here at a press conference on Wednesday. The Suri-run firm has hotels in Bangalore, Udaipur and Khajuraho, which too have The Lalit branding.
The chain has 10 hotels that are currently under development in Kerala, Kolkata, Jaipur, Chandigarh, Ahmedabad, Amritsar, Noida, Dehradun, Dubai and Thailand that are expected to be operational between 2009 and 2011.
The Delhi property is being renovated and will be ready by March-April next year.
“We are continuing with our development as scheduled and there has been no slowdown whatsoever on the development front,” Suri said, adding the Rs1,200 crore spending will be funded equally through internal accruals and borrowings. An initial public offer is not on the cards in the next two to three years, she added.
Hotels in larger cities, are experiencing lower occupancy as businesses cut back on travel. Suri said Bharat Hotels was open to acquiring properties and was “waiting for the rates to drop further”.
Well-capitalized hotel firms such as Bharat Hotels will move ahead decisively with their expansion plans, one expert said. Such firms “recognise the opportunity and are probably looking at a long term view and building right now so that when the economy turns around, which it will, they will be on their feet,” said Sudeep Jain, executive vice president and hotels country head at the Gurgaon office of real estate consultancy JonesLang LaSalle Inc.

Source : Livemint.com

Parsvnath Developer’s Set to Open 5 Star Hotel in Panaji

Parsvnath Hotels Ltd, a subsidiary of Parsvnath Developers Limited (PDL), India’s leading real estate and Infrastructure Company, has received 5-star category approval from the tourism ministry for its project at Patto Plaza in Panaji. The hotel is expected to be operational by 2010-end. The project is being developed on an area of approximately 3,150.20 square metres. The hotel, which is to offer 125 rooms and suites, would also have a coffee shop, multi-cuisine as well as specialty restaurants, a bar and a few shops coupled with all amenities. Strategically located in the hub of the business district in Goa, the proposed hotel complex is in close proximity of City Centre in Panaji and just 35 km from Dabolim Airport in south Goa.

Source : www.indianrealtynews.com

Parsvnath to put on hold retail foray

NEW DELHI: The economic slowdown and the depressing global financial sentiment have forced leading real estate company Parsvnath Developers to put on hold its foray into the retail sector along with a multinational company as its partner.

The company is now studying the market conditions and would further re-evaluate the situation and then decide on its future expansion in the retail sector. However, the company said there would be no change in plans on the real estate side and all its projects, including the one connected to the hospitality industry, were proceeding on schedule.

The company had recently got the five star status for its hotel projects in Goa, Ahmedabad and Lucknow that are expected to be in place by 2010-11.

According to a company spokesman, the present adverse market conditions caused by the global financial crisis and the resultant economic slowdown have forced the company to review the retail plans. The development was a temporary phenomenon and had been done after taking into confidence its international partner. “If the condition improves, we would review the situation again in another 3-6 months and take the necessary decision,” the spokesman added.

Parsvnath was planning to have 5-10 front-end stores by this fiscal, with an international retail partner supporting the company for logistics. The company’s retail plans included, hypermarkets, food joints, and very large retail stores of about 2.5-3 lakh sq. ft. In June, when the company announced its plans to foray into the retail space, it expected a large roll-out number to add to its balance-sheet this fiscal.

Initially, the plans were to roll out stores in Delhi and Mumbai, followed by other cities.

Parsvnath had last year formed a subsidiary, Parsvnath Retail Ltd., for its retail business and has acquired 5.5 million sq. ft. of space across the country.

Source : www.hindu.com

Govt moves to stop illegal land sale in Goa

NEW DELHI (Reuters) – The government is clamping down on foreigners illegally buying property in the country, including the coastal state of Goa, where residents complain land mafia are helping Westerners overrun their culturally distinct state.

An abundance of sun and sea and the attraction of low cost living encourage thousands of Westerners to stay in Goa, many of them illegally buying property from organised land rackets trying to cash in on a real estate boom, officials said.

The Indian law says foreigners are free to buy real estate, but with limits: Any money invested here must stay in India, and for the first year, buyers must be in residence more than 182 days and file income tax.

Goans say those rules are routinely flouted and blame the unchecked flood of illegal tourists for an erosion in local culture and rising crimes.

A spike in drug trade has made matters worse.

“It has come to the notice of the central government that foreign nationals are buying immovable property illegally in some parts of the country, particularly in Goa, which has raised concerns,” a government statement said on Thursday.

The statement advised state governments to be “extra vigilant” against violation of rules regarding sale and purchase of immovable property to foreigners.

“Where appropriate, the authorities may consider reviewing registration of sale/purchase already made to determine their compliance with legal requirements,” it said.
A clamour of complaints from Goans last year saw the state government first investigate the sale of more than 400 properties to foreigners since 1999 and then propose a ban on sale of any land to foreigners.

Goa this year also dropped plans to build industrial enclaves after strong protests from political and environmental groups who said a proliferation of industry could ruin the state’s fragile ecology and a heavy influx of outsiders would strain its limited resources.

Locals have linked a rise in crimes in Goa to drug trade and land mafia, with many of the Goa rackets run by foreigners, especially Russians and Israelis.

The palm-fringed beach state has seen a rash of crimes this year, including the murder of a British teenager and the rape of a German girl.

At least 126 foreign nationals have died in the state in the past two years, 40 of them British, officials said.

Source : in.reuters.com

Pride focuses on business hotels and the resort category

In a bid to expand its footprint, The Pride Group of Hotels plans to launch a five star hotel in Bengaluru and Jaipur by end 2008. Three 5 star properties in Alibaug, Goa and Mumbai are currently in the planning stages, as well.

The ‘Pride Biznotel’ (business hotel) and ‘Pride Resort’ brands offer three operating hotels and the group is negotiating for three additional properties, which will be added during this year. The Pride Group has already acquired individual hotel properties and started managing and marketing them under its ‘Pride Biznotel’ and ‘Pride Resorts’ brand names. The group plans to add a total of 15 properties under the Biznotel brand umbrella in Nashik, Mysore, Indore, Coimbatore, Raipur, Madurai and Goa. Pride Hotels is negotiating for properties in Kerala, Andhra Pradesh and Gujarat.

With the addition of these hotel properties, Pride Hotel will have a pan India presence; it will offer 1500 rooms in the business hotel category.

Source : hospitalitybizindia.com

Royal Orchid to manage 10 Ramada hotels

In a bid to expand its Ramada brand of upper mid-scale hotels in India, Wyndham Group which is headquarted in the US has tied up with Bangalore-based Royal Orchid Hotels to open 10 Ramada hotels across the country.

Royal Orchid will have exclusive development rights for the Ramada brand to manage hotels across Rajasthan, Maharashtra, Andhra Pradesh, Karnataka and Tamil Nadu. Wyndham Group already has 10 properties in India including Delhi, Gurgaon, Mumbai, Jaipur, Varanasi and Goa.

Under the alliance, Wyndham will offer use of the Ramada brand and market the hotels through its international sales network while Royal Orchid will manage the hotel.

The first hotel under the agreement has come up at Bangalore where Royal Orchid’s Hotel Harsha has been brought into the Ramada fold. Royal Orchid has invested Rs 10 crore for renovating the hotel. Royal Orchid will pay a fixed percentage of profits from its Ramada hotels to Wyndham.

“Having a well known international brand name and Indian management makes an ideal proposition in the hospitality industry. With this partnership we are evolving into a management company, “ said Chender Baljee, chairman and managing director of Royal Orchid Hotels. He added the tie-up would see setting up of hotels in Pune, Chennai, Nagpur, Indore, Hyderabad, Jaipur, Coimbatore and Mumbai in the next five years.

Royal Orchid independently operates 11 hotels in Bangalore, Mysore, Pune, Jaipur, Goa and Hyderabad. The group plans to invest Rs 500 crore in the next five years to set up hotels in Delhi, Hyderabad, Jaipur, Mumbai and Ahmedabad among others.

The group is also constructing its first international resort in Dar Es Salaam in Tanzania which would be operational in 2010. Funding for the expansion would be through its internal accruals.

Royal Orchid has debt of Rs 20 crore and has so far spent Rs 150 crore on this expansion. The company added that Rs 100 crore will be from reserves and Rs 250 crore will be through debt.

Royal Orchid in addition to this expansion also has a budget offering – Peppermint.

The Wyndham group operates 850 Ramada hotels in 45 countries and is looking at expanding its presence in India. “We are right now working on the franchise model to bring our midscale and economy brands to India, “ Said Oliver DuPont, senior vice president International development, Wyndham Hotel Group International.

Business-standard

Choice Hotels to invest Rs 1,500 crore in new properties

Choice Hotels is planning to invest Rs 1,500 crore over the next two years to double the number of its hotels from the present 25 to 50 across India. The company has already started construction of 21 more hotels and has tied up with Amrapali Group for three hotels, Mittal Group for two, Asterix Group for two and Sabri Group for developing four hotels. The new properties are to come up in New Delhi, Amritsar, Hyderabad, Pune, Chandigarh, Manesar, Gurgaon, Goa, Bangalore, Chennai, Ludhiana, Noida and Bathinda.

The Group, which has around 5,500 hotels around the world under ten brands, has 25 in India under the brands ‘Sleep In’ (accommodation based three-star), ‘Comfort’ (restaurant-cum-accommodation three-star), ‘Quality’ (full service four-star) and ‘Clarion’ (entry level five-star). Currently, it has an inventory of 2,000 rooms and plans to add 1,800 more in the new hotels.

Source : Travelbizmonitor.com

DLF to Invest Rs.1000 Crores in Multiplex Business

Real estate giant DLF is likely to invest about Rs 1,250 crore on expanding its multiplex business, DT Cinema, by adding about 500 screens in the next four to five years.

Currently, DLF is at a pre-operative stage with about seven screens. In another four to five years time, the target is to have 500 screens across India. By September this year, two DT Cinema complexes in Delhi and one in Chandigarh would be operational and 35 screens are expected to be functional in the next seven months.

Once these initial projects start, the mid-term aim is to have about 150 screens operational within two years. Apart from north Indian cities, DT Cinema plans to set up multiplexes in Hyderabad, Chennai, Kochi, Bangalore, Mumbai, Pune, Ahmedabad, Goa and Kolkata.

The size of each multiplex could be between 35,000 sq ft to 90,000 sq ft. DLF believes that the multiplex business offered a big opportunity as there is a shortage of nearly 40,000 screens in India.

Now, a Giga Projects in Goa

Already besieged with the issue of land availability, Goa could have more trouble on its plate as an Israeli real estate outfit has plans to build luxury apartments at three different picturesque locations, including Dona Paula.

Israeli news agency, Globes Online, was quoted as saying that Yaakov Engel of EngelInvest, along with another partner Hezi Hermoni, has purchased land for building three residential projects in the State.

Quoting its sources, Globes adds that the projects would be carried out through Engel’s privately held real estate developer EngelInvest Group. The two partners will invest $500 million in the building of 2,030 apartments, it quotes its sources further.

The report States, “The first and largest of the three projects is a 1,600-apartment complex in the Cortalim region overlooking the banks of Zuari river. The second project is a 160-unit complex in Panjim. And the third and most luxurious of the three projects is a 270-apartment complex in the up-market region of Dona Paula, considered the most luxurious region in Goa because of the breathtaking view from the sea front. The apartments in this project will reportedly sell at a price of $5,000 (Rs 2.11 lakh) per square meter.”