Five-star hotel boom reaches Bhubaneswar

Bhubaneswar April 03, 2007

The Orissa government has received five proposals entailing an investment of Rs 300 crore for setting up four five-star and one four-star facility hotel in the capital over the next two years.

The national and international promoters are ITC-Welcom Group Sheraton brand of hotels, Delhi-based real estate giant Unitech, BPR Hotels Limited in tie up with the Best Western Group of International chain of hotels and Lakshmi Franklin Hospitality Pvt Ltd.

The city-based Royal Mid-Town Hotel has also given a definite proposal for setting up a four-star facility hotel.

According to government conditions the hotels will have to be set up within 20 months from the approval of land given by the Bhubaneswar Development Authority (BDA). Land for the projects have almost been finalised and distribution is currently underway.
Out of the total investment of Rs 300 crore proposed to be made for setting up the hotels by the national and international chains, the five-start hotels would account for Rs 260 crore and the balance would go for the four-star hotel.
The city currently has two five-star hotels of the total 280 odd hotels spread in the higher, middle and lower segments.
When contacted the Orissa Director of Tourism Santosh Sarangi confirmed the development while pointing out that speedy action was being taken by the government in bringing the national and international chain of hotels to the city.
The hotel business in the city currently hovers at Rs 750-800 crore and is likely to surge to over Rs 1,500 crore in the next two years once the 5-star chains start operations.

According to sources, the biggest investment for setting up 5-star facility hotels is being made by Unitech. The real estate major will invest Rs 110 crore in the project. This is possibly the first venture where the realty major is making forays into hotel industry.

Unitech will set up the five-star property in Bhubaneswar, Paradip and Satpada, the considered tourist destinations of the state. The government of Orissa has already allotted five acres for the project at Rasulgarh in Bhubaneswar. Land for Paradip and Satpada would shortly be finalised.

Unitech recently made the highest bid of Rs 211 crore for setting up a residential and commercial complex on a 11.5 acre of land offered by the Bhubaneswar Development Authority (BDA), thereby fuelling price war in the city's growing real estate business.

Sources said, ITC Welcom group with its Sheraton brand of hotels has given a proposal to invest Rs 50 crore for setting up a five star. This would be another feather in ITC Sheraton's cap, which already has 80 Sheraton brand of hotels spread out in 50 destinations of India.

The Orissa government has offered land to the premier hotel chain at Doomdooma near Bhubaneswar in Khurdha district. The deal would shortly be struck. A similar proposal for five-acres at Doomdooma has also been given to BPR Hotels Limited which has tied-up with one of world's largest chain of hotels - the Best Western Group of International Hotels. Best Western would invest Rs 50-crore for setting up the 5-star property.

Best Western currently has 4,200 hotels in 80 countries worldwide with presence in Dehradun, Varanasi, Khajuraho, Kolkata, Mumbai, Hyderabad, Chennai and Kovalam in India.

Land for setting up the 5-star facility by Lakshmi Franklin Hospitality Pvt Ltd is currently being decided by the government.

Tourism department officials are confident of clinching the land deal within a few days. As for the city-based Royal Mid-Town Hotel the government had offered them 1.8 acres of land at the Infocity, the current hub of IT companies flowing into the Temple City.

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