Assotech to invest up to Rs 1,000 crore on serviced residences

NEW DELHI: Real estate developer Assotech Realty plans to invest up to Rs 1,000 crore in 5-7 years to set up serviced residences for which it has tied up with hospitality chain Lemon Tree Hotels Group for management.

Assotech Realty will launch the first project - Sandal Suites - at its Assotech Business Crestera in Noida that will have 210 units, which would be managed and operated by Lemon Tree Hotels.

"We plan to launch up to 10 similar projects in next 5 to 7 years with an investment of Rs 800 crore to Rs 1,000 crore," Assotech Realty Pvt Ltd Managing Director Neeraj Gulati told reporters here.

After Noida, the destinations that are bing considered are Ahmedabad, Goa, Hyderabad, Bangalore and Visakhapatnam, he added.

"We have joined hands with Lemon Tree Hotel Group to offer world class services to our customers at these 4 star serviced residences," Gulati said.

The Sandal Suites aim to address the needs of the transit stay, extended stays as well as other segments, he added.

Lemon Tree Hotels Group Deputy Managing Director Rattan Keswani said: "With this alliance we step into new horizon of serviced residences hotel concept with the aim to accelerate our growth plans in India."

Under its business model, the serviced apartments buyers can lease back their assets to the Assotech Realty and they will be given right to stay in the accommodation for a specified period per year and also get returns on their investment.