Room for many more

HOSPITALITY: Succour, finally, for the high demand Gurgaon market.

The new expressway has made life much easier for business travellers to Gurgaon "" transit time from the airport is down to just 15 minutes. But lack of quality hotel rooms continues to be an issue.

According to HVS Hospitality Services, there are only about 850 decent rooms in Gurgaon...a thousand, if you add everything. The demand currently is for at least double that amount.

But even here, there's good news with the launch, earlier this month, of a new five-star hotel. The Crowne Plaza Today, located next to the expressway in the heart of Gurgaon, will add 234 rooms to the inventory.

The new hotel already has a "fabulous response from corporates in Gurgaon and Delhi. We have received bookings starting from June 18, 2007, and some even for the coming year", says GM, Thomas Schmelter. The hotel's best flex rate will start from Rs 12,000, which is the average room rate of an established hotel in Gurgaon today.

There's more in line. The Westin Sohna-Gurgaon, Resort & Spa launches in October this year, followed by a 320-room Novotel by mid-2008. The Leela finally gets a hotel in the NCR, through its agreement with Ambience Infrastructure to manage a five-star deluxe property, The Leela Kempinski Gurgaon, which will have 319 rooms and suites, and 90 serviced residences. The property, which is part of a commercial complex, is under construction and could open in the next six months.

A 130-key Oberoi luxury hotel and 40 service apartments have been finalised near Manesar in Gurgaon district. A similar 150-key Oberoi hotel will also come up next to the Trident Hilton. The Taj Group of Hotels is also planning a 200-room hotel on seven acres in Gurgaon.

Unitech is building the 199-room Marriott Courtyard next to the Park Plaza as also the 173-room Marriott Executive Apartments in Gurgaon, while the Vatika Group is planning another Westin at IFFCO Chowk.

There is news of a Radisson on Sohna Road, a Grant Hyatt within Naresh Trehan's Medicity project in Sector 35, and even a JW Marriott somewhere in Sector 56. The Hans is planning a business hotel in Sector 43, Gurgaon, opposite the DLF Golf Course, says Rita Shah, COO at an investment of about Rs 100 crore.

The mid-market segment will see action too with InterGlobe and Accor working on an Ibis property in Gurgaon. There is to be another Park Plaza. Both these will be on NH-8.

The maximum impact of this glut in supply will be seen in 2010, says Siddharth Thaker, associate director, HVS Hospitality Services, when about 5,000 new rooms will enter the market, catering to the demand created by the Commonwealth Games. Thaker, however, allays fears of oversupply.

"With two new DLF SEZs cleared at Sonepat and Bhiwadi, and a good chunk of land still to be developed at IMT Manesar, there is going to be enough demand in the future," he says, adding that "the commercial absorption trends are also very healthy at 4-5 million sq ft a year".

The active development ratio in Gurgaon is still 65 per cent, which means all announced properties might not take off.

Whatever that be, increased supply will certainly help rationalise tarrifs in Delhi and Gurgaon, both of which have some of the highest room rates in the country today.