Mumbai -- Project News and Developments

[Jai]

40-storeyed hotel to rise at Phoenix

It is expected to be among the tallest structures in the area and possibly the tallest hotel in Mumbai

22 May 07
Mumbai Mirror Epaper



The Atul Ruia-promoted High Street Phoenix Mills (HSPM) plans to construct a 40-storey five star hotel on its premises at Lower Parel. Sources told Mumbai Mirror the first five floors will be used as parking space, the next two will be leased out to retail shops and the rest would accommodate the 500-odd luxury rooms.

Once completed, the hotel is expected to be among the tallest structures in the area and possibly the tallest hotel in the city.

The sources told Mumbai Mirror that HSPM has tied up with Shangri-la Group for the maintenance part.

Shishir Srivastava who heads the hotel projects division at HSPM confirmed the plan to build a hotel but refused to divulge details saying they are yet to be finalised. “We are in talks with some groups. The project will be finalised in the next one month,” he said.

HSPM has decided to raise Rs 1,000 crore by way of preferential allotment of shares and placement of shares with qualified institutional buyers.

Shangri-la would not invest any money. It will offer technical expertise and manage the hotel. The revenue share model is to be worked out.

This would be second five star hotel in the central suburbs. The first was constructed by ITC at Chinchpokli.

Joe Rajan, chief executive of Harvey India, which is into sourcing clients for hotels worldwide, said a new property would do just as well.

“Average room rents in the city have been going through the roof. Top hotels are competing to fix higher room rates. So a new hotel is always welcome,” he said.

A senior official of a major hotel chain said there is enough room for another hotel in Mumbai, the financial capital, since the economy is booming. “As of now, occupancy rate in most hotels is 70%, which is traditionally considered low. But for large parts of the year, it is almost 100% despite the high tariffs,” said the official.

Shantanu Jha, director (sales), Intercontinental said the new hotel can expect plenty of business as there is a gap between demand and supply. “Average room rents are in the vicinity of Rs 13,000-15,000 per day. In big hotels, there is no difference in occupancy rates in peak season, which is October-March, and non-peak season,” he explained.

ABOUT SHANGRI-LA

Shangri-La Hotels and Resorts was launched in 1971 with a deluxe hotel in Singapore. Today, the Hong Kong-based company is the largest Asian-based deluxe hotel group in the region. It has 50 deluxe hotels and resorts in key cities in Asia and West Asia. Besides, it is regarded as one of the world’s finest hotel management companies.