Analjit Singh shelves Delhi One hotel plan

NEW DELHI: Analjit Singh, chairman of the hospitals-to-insurance group Max India, has shelved plans to build a five-star hotel in Noida's premium Delhi One project over concerns that upcoming hotels in the city would lead to a glut of upmarket rooms, according to people close to the development.

Singh had originally planned a hotel on the 500,000 sq ft tower he bought in the mixed-land use project being developed by The 3C Company off the Noida end of the DND flyway. It was touted as Singh's grand entry into the hotels business with his own brand.

A Max India spokesman said the group is now likely to shift its headquarters to the new tower while leasing out rest of the floors in the building. The spokesman refused to share the details. People quoted above said Singh was concerned that 18 premium hotels that are coming up in Noida would result in oversupply of luxury rooms. Singh had earlier too ventured into the hospitality sector but only as an investor or a joint venture partner.

In 2010, he acquired 7% stake in East India Hotels, which runs the Oberoi hotels. He subsequently reduced his holding to about 4%. Singh decided to sell his remaining stake after East India Hotels sought the help of Mukesh Ambani-led Reliance Industries in staving off a takeover threat from rival ITC. In March this year, he finally exited EIH by selling his stake to RIL for close to Rs 200 crore.