19 October 2007
Hotels Being Accommodated In Big Malls
The popularity of malls has attracted the attention of the hospitality sector as well. With the rising costs of real estate, hotels are now looking to rent space in malls and other commercial complexes. Accor Hotels and Ginger Hotels are in talks with mall developers to build Formulae 1 brand of budget hotels at the top floors of malls in tier I and tier II of cities. Ginger Hotel has signed contracts in Ludhiana, Amritsar, Mohali and Ahmedabad. Real estate biggies like Phoenix Mills and DLF, too, plan such hotels in various cities."This is a concept that hotels have been following worldwide and is just catching up in India." said Mr Shishir Shrivastava, CEO, Phoenix Mills. The cost factor also works well for the hotels. For instance, a 100 room stand alone Ginger hotel will cost the company (excluding the variable cost of the land) anywhere between Rs 13-15 crore that is 30% more than what it would cost it over a mall. While the hotel sits on the top floor, the lower floors will be used for retail area. In a way it's a win win situation for both the hotelier, mall developers and owners, as developers are always keen for deals involving renting out of space in large.
Source: 11 Oct 07 Business Standard