Chancery Pavilion may hand over management contract
Swissotel, the Zurich-based global hospitality major, is set to debut in Bangalore. Industry sources indicate that this chain may be taking over the management contract of Bangalore-based Chancery Pavilion in the Central Business District.
The Chancery Group had entered the five star hotels segment during early 2006 with the opening of its 234-room Chancery Pavilion on Residency Road with an investment of Rs 120 crore. The transition is expected to be in place by January 2010.
The five-star business hotel was the second hotel of the group after The Chancery, a four-star deluxe hotel that was opened in 2004 and was built at a cost of Rs 70 crore. The group is promoted by K C Chandrashekhar Raju, managing director, and K Chengama Raju, chairman. The management, while declining to comment on this deal, did say that they are exploring various options.
Swissotel Hotels & Resorts is owned by Fairmont Raffles Hotels International, a global hotel company with 91 hotels and resorts worldwide under the Raffles, Fairmont and Swissotel brands.
The company also owns Fairmont and Raffles branded Residences, Estates and luxury private residence club properties. Swissotel dots close to 30 locations across the world and if the Bangalore plans fall in place, it will be Swissotel’s second property in India after the one in Kolkatta which is being constructed.
During September 2009, Swissotel signed a management contract with Bengal Ambuja Housing Development Limited, a company belonging to the Neotia family, which has built up India’s largest cement business, before divesting the same a few years ago.
Swissotel’s entry into Bangalore comes at a time when the city is witnessing a frenzy of hospitality projects against severe economic recession. Industry analysts, in fact, term that Bangalore is flirting with danger of oversupply of luxury hospitality projects in the short term.
Swissotel has to not only contend with home grown majors including the Taj Group, ITC Hotels and Oberoi’s but will have to square off against global peers Hyatt, Hilton, Ritz Carlton, Marriot and Sheraton in Bangalore.
