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Bihars Idol on Real Estate Track : Lalu's Hotel Dream Interests Builders


Bihars Idol on Real Estate Track : Lalu's Hotel Dream Interests Builders

Last updated: December 5 2006
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  • Bihars Idol on Real Estate Track : Lalu's Hotel Dream Interests Builders

    Lalu's hotel dream interests builders...
    Railway minister Lalu Prasad Yadav’s call for private-public partnership in setting up budget hotels has generated tremendous interest among real estate and corporate biggies.

    As many as 56 corporates are jostling to grab the pie to set up 20 budget hotels across the country. Companies such as Emaar-MGF consortium, Ajay Bijli-promoted PVR industries, Simplex Infrastructure, Xander Realty Fund, MGM Entertainment and Spanco Telesystems Solutions have bid for budget hotel sites on surplus railway land. This will be the first test case for private-public participation in creating hotels in the budget segment.

    Railways has chalked out plans to set up 100 budget hotels across the country over the next three years to create an inventory of over 10,000 rooms. Indian Railways Catering and Tourism Corporation (IRCTC) has asked for bids from private hospitality developers and foreign players for setting up two to three star hotels in 20 locations under the Rail Ratna brand. These include Madurai, Vijaywada, Secunderabad, Chandigarh, Mumbai, Tirupati, Kanyakumari, Rameshwaram, Nagpur, Ooty, New Jalpaiguri, Agra, Pune, Darjeeling, Bhopal, Jodhpur, Jaisalmer, Udaipur, Sealdah and Bikaner.

    On an average, each property will house around 100 rooms. Indian hospitality market has around 1,00,000 rooms in the organised segment with over 80% of them being in the star-category. The industry needs to double its room inventory over the next three years.

    These bids are for developing, operating and maintaining Rail Ratna brand of hotels on licence basis for 30 years. With nearly 4.23 lakh hectares of land across the country, Indian Railways is one of the largest land owner in the country.

    While around 3.19 lakh hectares have been used for Railway operations including construction of rail tracks and other structures, 43,000 hectares is lying unutilised and thus available for commercial use. Around 2,240 hectares of railway land have been encroached.

    dont believe me.... just checkout the economic indiatimes this week
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