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Telangana Goverment
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Hospitality & Real Estate Majors see more Greenfield Growth around Metro Rail Corridors in Hyderabad
Hospitality & Real Estate Majors see more Greenfield Growth around Metro Rail Corridors in Hyderabad
Hyderabad: Hospitality and Real Estate majors are renewing their interest in Hyderabad by expanding their keys or setting up greenfield projects in the city after a gap of many years due to political uncertainty over the bifurcation of the State into Telangana from the Andhra Pradesh. The top multinationals and Indian majors in the Hospitality and Real Estate industry observed that more and more Greenfield Growth is expected to be emerging in and around the three Metro Rail Corridors in Hyderabad. This has fueled with the rapid growth of investments by various Global giants.
The increased interest is primarily attributed to the relatively cheaper real estate costs, well planned Metro Rail corridors, well heeled urban infrastructure, growing floating population with surplus income, proposed Information Technology Investment Region and global giants such as IKEA and Amazon evincing interest to set up large facilities, among others. Importantly the proactive and forward-looking attitude of Chief Minister Kalwakuntla Chandra Sekhar Rao is seen as the prime prerogative for various industry majors to look at Hyderabad as global investment hub.
Hyderabad currently has over two dozen star hotels with leading brands including Taj Hotels, ITC, Marriott, Novotel, Park Hyatt, The Park, Westin, Radisson Blu, Trident, Avasa, Royal Orchid and Green Park, with a total of around 10,000 rooms in 3, 4 and 5-star segments.
ITC, Oberoi, StayWell and Hyatt are among half a dozen hotel brands that are keen to set up new properties with a cumulative capacity of around 1,200 rooms over the next 18-24 months involving around Rs 3,000 crore of investment.
Sandip Patnaik, managing director of the global real estate services firm Jones Lang Lasalle’s (JLL) Hyderabad chapter, attributes “the sudden interest by hospitality players primarily to the political stability, assured power supply, lower entry costs, apart from quicker ap provals by the Telangana government”. Further, he said, increased interest by retail players such as Amazon, Walmart, Metro and IKEA and several information technology and financial services firms to cash in on the urban infrastructure and skilled manpower would drive occupancy ratios of hospitality players.
Real estate services firm Cushman & Wakefield’s Director PR Srinivas said Hyderabad is among the seven top cities that would drive the sector’s growth. The other cities are Delhi, Mumbai, Bengaluru, Chennai, Pune and Ahmedabad. “While the sector could see at least 5% growth this fiscal on a national level, some regional markets like Hyderabad could see much better growths, owing to several advantages.”
Hyderabad is among the few Indian cities that has witnessed improved occupancy levels, according to STR Global Reports, where the city saw occupancy ratios growing healthily to 57% in 2014-15 from 50 per cent a year ago. However, owing to surplus availability of hotel rooms, the market saw its average room rates remaining flat at Rs 4,762, up from Rs 4,677 a year ago.
Hyderabad is the only city in India that has robust infrastructure like Hyderabad International Convention Centre (HICC) to host large global conclaves.
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