Floating hotel by November

Manor Floatel, the first floating hotel in the country, will start commercial operation from November in Kolkata.

The hotel which has 73 rooms, three suites, coffee shop, speciality restaurants and conference facility, is hoped to be a major destination for the business travellers in the city.

The company has tied up with Orchid International which will manage the Rs 31 crore project. Orchid will also market the hotel in India and abroad.

Manab Pal, managing director of the company, said the room tariff as well as the food and beverage (F&B) would be priced cheaper than comparable hotels located on land.

"Room rent has been pegged at Rs 2400 which is very competitive given the kind of facilities to be provided and the ambience," Pal said.

The new hotel will face tough competition from existing six five-star hotels in the city. The total availability of hotel rooms in Kolkata increased substantially after two new five start deluxe hotels, ITC Sonar Bangla and Hyatt Regency, became operational in 2002. Pal expressed hope the improving business climate in the state would ensure good occupancy at Manor.

The company has projected two years period from the day of commencement to break even. This could be sweet news for the public shareholders of the company, who subscribed to its IPO way back in 1995.

Pal also admitted that shareholders who put in Rs 3.91 crore in the project has not seen profit in last nine years.

"Hopefully, things will change now," he noted. The promoters shareholding in the company is 55 per cent. IDBI has exposure worth Rs 7.4 crore as venture capital fund.

The project was delayed by many years as the company ran into problems with Kolkata Port Trust (KoPT) on the issue of classification of the vessel. While the port considered it a coastal vessel, the company argued it was only a barge. The matter was pending before the Calcutta High Court.

The promoters have arranged for extra charges that would have to be paid if the Floatel was declared a coastal vessel.

"We are going ahead with our plan," Pal said. The company will also pay a licence fee to KoPT for building a gateway to the hotel on the port land.