High streets for Punjab

Sonica Malhotra isn't one to let her emotions show easily. But behind the coded entrance to her office at the MBD Radisson in Noida, she exults: "We're all so excited." And well she might be "" for the parent MBD Group has two exciting projects on the anvil in Punjab that should consolidate its presence in the hospitality and realty segment in north India.

These "" called MBD Neopolis in both cases "" are mixed developments in two of the country's highest-spending cities that combine a luxury hotel with a mall and multiplex.

Nothing new in that, you might well say, if you're jaded with similar projects in Gurgaon, Delhi, Mumbai or Bangalore. But for Ludhiana and Jalandhar, it could be a first taste of organised luxury on a scale the two cities have not seen before.

"We'll have the first-mover advantage in a place where there is no five-star hotel, no organised retail, no nightclub or lifestyle club," says the executive director of the group, who says they are committed to offering an international experience to customers when the two Neopolis developments are commissioned by March 2008.

Being the first in is clearly something the group has experienced when it commissioned the MBD Radisson in Noida, still the district's only luxury hotel. Two of its dining concepts here "" Made in India and RED (or Rare Eastern Dining) "" are well established, and the Espace spa enjoys rare popularity in this part of the NCR.

And with average room returns (ARRs in hotelspeak) at Rs 7,900 currently, Malhotra is upbeat about the Punjab projects. "There's huge potential with a very large market, and people with a very high brand consciousness who have had the benefit of being well travelled, and who like spending."

The Ludhiana project is being marketed to major international and domestic brands, and while some have already signed on (anchor brand Debbenham's, and others like Guess, Next and Women's Secret), others are in stages of negotiation.

Interestingly, Malhotra says the design by architectural firm Morphogenesis has the mall located on the ground and first two levels according to a zoning structure with proven credentials in the West. The third and fourth levels will house a five-screen multiplex, while levels five to nine will house the 130-room MBD Radisson Ludhiana.

To be built at a cost of Rs 150 crore (the land cost an additional Rs 45 crore), MBD Neopolis will have the city's first nightclub as well as entertainment club, as well as the group's third foray into branded diners "" Gigabite. The Gigabite concept of 20,000 sq ft-plus area is interesting.

Essentially devised as a food court, under the supervision of MBD chefs, it will cater to regular diners who constantly crave change. "International sound and light designers are working on creating an interactive ambience that responds to each individual and his/her mood. And instead of different food courts with different corporate visions combined together in a forced environment, we will offer the buffet equivalent of a five-star hotel with individual a la carte cuisines, live kitchens, and even customised, cyclical menus."

While the Ludhiana project has reached ground level, Jalandhar is still to break ground ("though it's 40 per cent leased out", claims Malhotra). To be built at Rs 80 crore (plus land cost around Rs 45 crore), unlike in Ludhiana, the MBD Radisson Jalandhar is already functional adjacent to the proposed mall-multiplex.

The rest of the facilities, however, will be similar with a nightclub and, of course, Gigabite. The critical difference is in the franchisee partners for the multiplexes "" Fame Shringar in the case of Ludhiana, PVR in Jalandhar. In both cases, provisions are being made for the Platinum Lounge concept with each of the screens. Both developments will also have large banqueting facilities to cater to the state's demand for glitzy parties and weddings.

Gigabite, even though it is still to be launched, is being seen as an independent profit centre by the group, which would also like to introduce it as a professional, branded food court at other developments as well as a standalone facility in Delhi, Mumbai and Hyderabad.

"We've adopted the leasehold model for the malls, to keep the premium model intact," says Malhotra, and lease rates, depending on location, vary from Rs 100-150 per sq ft.

And with the hospitality business booming, the Malhotras are hoping to soon share announcements for greenfield projects in Hyderabad, Bangalore and Goa. "Do you know," informs Malhotra, "that Bangalore is currently doing ARRs of Rs 20,000. In the next three years, though, it should stabilise at Rs 8,000. At 70 per cent occupancy, that can prove extremely profitable."

Behind the closed door of her office, you can imagine Sonica Malhotra clicking her heels in satisfaction.