Conversion policy boosts hotels in Chandigarh

Chandigarh's hotel industry is likely to flourish as a result of the introduction of the conversion policy framed by the administration of the Union Territory of Chandigarh.

The conversion policy, with the conversion charges of Rs 19,200 per square yard, has attracted even big brands in the hospitality industry like the Sarovar Group of Hotels and Resorts and Ginger Hotels, besides local players.

Proposals have been given for more than a dozen hotels in the industrial areas of Chandigarh as an outcome of the new policy.

Anil Madhok, managing director of the Sarovar group, confirmed that the group had decided on a hotel site in the industrial area of Chandigarh on about one acre. "It will be a 130-room budget hotel with a conference room and other facilities. We will invest about Rs 30 crore in addition to the land cost. The work on the site will commence in three months and it will take another 15 months for the completion," he told Business Standard.

It is noteworthy that the delegates from the Indian hospitality industry during the Federation of Hotels and Resorts Association of India convention held in Chandigarh in November last year quoted the exorbitant land cost as the biggest constraint in putting up new hotel projects in the city. As the industrial area has a proximity to railway station as well as the Chandigarh Air Port, it is an ideal location for such projects.

Taj Group subsidiary Ginger Hotel is also likely to set up a 100-room budget hotel in Chandigarh. A company executive confirmed it but the details of the project are likely to be worked out.

The CSJ Infrastructure the Group company of L&T has also acquired a 22 acre plot in Chandigarh industrial area and a hotel project would be a part of the commercial site.

Besides this, a local chain of hotels 'Orange' promoted a BJP leader has also decided to promote two budget hotels of 36 rooms and 22 rooms each with the provision of conversion.

The promoter Yashpal Mahajan told Business Standard that the 36 room hotel would be launched on 20 December as the year end brings lucrative returns to the hotel ventures.