GMR invites bids to develop airport land

After a year of taking over the airport, the GMR-led Delhi International Airport (DIAL) consortium has initiated the process of commercial property development by inviting bids for building hotels on nearly 40 acres.

A part of the 250 acres earmarked for commercial activity around the airport, DIAL has slotted the land for private sector developers to build hotels. Senior management executives of the consortium are currently conducting roadshows in London to attract venture capital funds and other investors to take part in the commercial property development around the airport.

Expressions of interest have been invited by DIAL's property arm, Delhi Aerotropolis, a wholly owned subsidiary of the company. A total of 53 acres have been reserved for the hospitality sector. DIAL's property arm has informed leading developers of the country that the hospitality district near the airport has been divided into five land parcels for premium, upscale, business and convention hotels. About 20 per cent of each parcel can be leased out for freight operator offices, travel agencies, restaurants and other commercial purposes. The developer can bid for the entire area or one or more land parcels.

The location is being considered as "unbeatable" by industry experts. In addition to this, the hotels will enjoy connectivity through the national highway network (NH-8) and a direct metro link between the airport and Connaught Place.

Tourists accounted for 70 per cent of the total demand for hotel rooms in the capital between 2000 and 2002.

With a booming economy, business travellers to Delhi in 2006 accounted for nearly 65 per cent of the demand for hotels. Leisure tourists made up 26 per cent of the pie.

Sources said Delhi Aerotropolis intended to dispose of a majority of its interest in the property, but would retain a stake in the project by granting rights to the land and by entering into property development agreements with the selected partners.