Focus North - Top hotels vie for Rs 400-cr Mohali project
December 9, 2010
The Punjab Infrastructure Development Board's (PIDB) proposed Rs 400-crore project for the development of a 5-star hotel and international convention centre in Mohali has evoked an unprecedented response.
While Chandigarh is witnessing feverish activity as big hotel chains setting up hotels here includes JW Marriot, Hyatt, Sheraton, Sarovar's Park Plaza and Bharat Group of Hotels. The project to be developed on design-build-operate-transfer (DBOT) basis and with private sector participation (PSP) is first of its kind in the region. Pre-bid meeting for the project was attended by major 5-star hotel chain owners, infrastructure development companies and real estate investors of the country.
Earlier, PIDB on behalf of GMADA (Greater Mohali Area Development Authority) had invited tenders for the highest concession fee payable annually by the bidders. The project and tender submission date is being scheduled by end of December 2010. IL&FS IDC is assisting PIDB in bid processing management. The project is structured to be developed on 10 acre offered on 50 years long lease. The land prices range between Rs 35-45 crore per acre.
PUDA sources told FE that minimum development obligations of the project include a 5 star hotel with 200 rooms, an international convention and exhibition centre with 4,000 seating capacity, commercial area equivalent to 10% of the actual constructed area of the hotel and parking for minimum 800 equal car space (ECS). Service apartments can be constructed as an optional facility for the project.
The project, with an estimated cost ranging between Rs 300-400 crore, enjoys considerable monopolistic advantages. The proposed convention centre is first of its kind in the region. Being a part of the city centre, the project is likely to derive considerable benefit from economies of scale. The site is located right on the eight-lane road leading to the proposed International Airport at Mohali and on the border of Chandigarh-Mohali, which is also proposed for Metro rail alignment connecting Chandigarh-Mohali-Panchkula known as the 'Tricity' having a population of 20 lakh plus.
Development of the proposed project would cater to the long lasting demand for a convention and exhibition facility in the region. The hotel site faces 40-acre green area in leisure valley and an amusement park.
A senior official of Punjab Urban Development Authority (PUDA) told FE that prominent among present in the meeting were Asian Hotels (West) (promoters of Hyatt Regency, Mumbai), ITC (promoters of Maurya Sheraton Group of Hotels), DS Construction, Soma Enterprise, Simplex Infrastructure, C&C Construction, Era Infrastructure, KCP Projects, Blue Coast Hotels and Resorts (promoters of Park Hyatt, Goa) and Xander Advisor India (an assets management company). Besides, Taj GVK has also shown keen interest in the project.