DLF, Hilton plan first branded residential hotel in Goa
Residential hotels that combine the flexibility of a vacation home are all set to debut in India. Business week in pics | Oberois own three of world's top hotels
By Vishakha Talreja & Rajat Guha, TNN |
NEW DELHI: Residential hotels are all set to debut in India. Such hotels combine the flexibility of a vacation home with the service of a hotel.
Real estate developer, DLF will soon come up with India’s first branded residential hotel with the Hilton Group in Goa. The 200-room hotel with 80 villas that will be sold out as vacation homes on lease-back basis, will be operational in three years. DLF plans to have six hotels on similar format in five years.
"India has upgraded from medium-rung houses to premium apartments. But in the hotel industry that kind of shift is yet to happen," says Siddharth Thaker, associate director, HVS International, a hotel consultancy.
With residential hotels that shift in the hotel industry will finally happen. Such hotels provide buyers an opportunity to invest in a property on sale-and-lease-back basis.
DLF is in talks with various other international brands such as Four Seasons and The Aman Group for these hotels targeting leisure destinations such as Kerala, Andaman, Sikkim and Himachal Pradesh. “We are well on track with the Hilton Group on our proposed projects.
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Goa residential hotel is the first to come up. We are likely to spend around $2 billion on our hotel projects based on residential hotel format,” Rajeev Talwar, DLF group executive director, told ET. According to a hotelier who runs a property in Goa, cost of constructing a hotel room in Goa is around Rs 20 lakh while that of a villa Rs 50-60 lakh.Globally, residential hotel is a popular format. “We are studying the Indian market to evolve the best pricing methodology for such hotels,” said an official associated with the project.
The Indian hospitality industry is registering a 20% YoY growth. “With more funds being pumped in the hotel industry, premium hotel formats that are globally popular such as Residential Hotels, Condo Hotels, Vacation Ownership and Private Residents Club will mark their entry in the country,” adds Mr Thaker. In Thailand, Indonesia Malaysia and some other markets all three formats have strong presence.
For the residential hotels, the group is targeting aspirational class and also NRIs who can’t invest in a holiday home due to skyrocketing real estate prices in prime locations.
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“The market for lifestyle products in India is growing. Though we will have to educate people telling them the difference between time share holidays, the format which already exists in the country, and residential hotels,” added the official associated with the project. Besides the residential hotels project, DLF also has a joint venture with the Hilton Group to develop around 75 hotels over the next seven years. DLF holds 74% in the JV while Hilton holds the balance.
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