This story first appeared in DNA Main newspaper edition on Saturday, January 29, 2011.
Two global hotel chains are in the final race to flag their iconic luxury hotel brands in the Indian hospitality market. The hotel site being fought for is in Mumbai, and the project is coming up in the upmarket Worli area on Dr Annie Besant Road. While one of them is a second-time entrant, it will be an India debut for the other challenger.
Mandarin Oriental Hotel Group and Starwood Hotels & Resorts are in the advanced stages of discussion with Mumbai-based realtor Vikas Oberoi-promoted Oberoi Realty Ltd to lock-in the hotel site for their respective brands. The brands on offer include the flagship 'Mandarin Oriental' from the Mandarin Oriental Hotel Group and St Regis from the Starwood Hotels’ bouquet.
Pegged to be the biggest project from the Oberoi Realty stable, ground work on this 3.1mn sq ft land parcel has already started. Located between the Crompton Greaves building and Grasim headquarters, the plot used to be a slum and will now be redeveloped. The slum dwellers will be relocated to a nearby area. Oberoi Realty has already hired South Korean construction major Samsung Engineering & Construction (Samsung E&C) for this project. The firm was the lead contractor for Dubai’s Burj Khalifa, the world’s tallest tower at 828m.
A senior official at Oberoi Realty said that the company is the final stages of negotiations with Mandarin Oriental and Starwood Hotels & Resorts for a possible association and that a final announcement is likely to be made very soon. “Slum dwellers at the three different parcels will be rehabilitated to one site. This will completely free up the 3.1 mnsqft, wherein 0.4 mnsft will be allocated for a five-star luxury hotel, 0.6 mnsft for commercial office space and 2.1 mnsft of branded residency,” said the official.
The Goregaon-based developer expects a revenue of Rs7,500-8,000 crore from this project, the official added. Vikas Oberoi, managing director of the company, declined to comment.
Once the hotel-cum-branded residence operator is finalised, the duo will enter into a 25-year contract. Oberoi Realty is planning to launch the residential segment sales by June 2011.
Mandarin Oriental has had a short stint in the Indian hospitality market through an association with IHHR Hospitality Ltd's flagship spa destination called Ananda in the Himalayas in Rishikesh. For St Regis however, this will be the luxury operator's first signed hotel if the agreement between Starwood and Oberoi Realty goes through.
Officials of Mandarin Oriental Hotel Group could not be reached for a comment, while those at Starwood denied having signed any agreement for their St Regis brand in India. “Starwood has been exploring opportunities for a partner to bring the St Regis brand into India and Mumbai is one of the cities apart from Delhi and a couple of others that we are looking at. While we are in talks with potential partners, we do not have anything signed as yet,” said Nikhil Manchharam, vice-president, aquisitions and development, Starwood Hotels & Resorts Pvt Ltd for India, Bangladesh & Maldives.
Oberoi Realty has also signed a letter of intent for a redevelopment project in the western suburbs and the final development agreement would be signed in a month. The realtor expects to generate Rs 15,000-20,000 per sq ft from the sale component. The company is also launching Oberoi Exquisite phase II of 1.4 mnsft and 3.3 mnsft development of Oberoi Exotica at Mulund at Rs 7,000-8,000 per sq ft.
Mandarin Oriental
A global hotel investment and management group, Mandarin Oriental currently operates (including those under development) 42 hotels representing over 10,000 rooms in 27 countries – 18 hotels in Asia, 12 in The Americas and 12 in Europe, Middle East and North Africa. The hotel company defines Mandarin Oriental as a family of individual hotels and resorts, each with their own distinct personality yet inherently linked to their exotic oriental roots. In addition, the group operates, or has under development, 13 Residences at Mandarin Oriental, connected to its properties. The Group has equity interests in many of its properties and net assets of approximately $2.1 billion as on June 30, 2010.
St Regis
Starwood's St. Regis brand was created by Colonel John Jacob Astor IV with the idea of developing a new style of luxury, focused on tangible advancements in the comforts afforded the wealthy. These innovations were debuted inside Astor’s classic Beaux Arts landmark, The St. Regis New York, when it opened in 1904 on 55th Street and Fifth Avenue. Before his untimely demise aboard the Titanic, Astor was able to fulfill his vision of creating a hotel where gentlemen and their families could feel as comfortable as they would as guests in a private home. Currently there are 40 The St. Regis hotels across the globe (including those under development). Middle East, Europe, Central & South America, Asia Pacific, Africa, Mexico and North America.
(My colleague in DNA Money, Pooja Sarkar contributed to this story)
Two global hotel chains are in the final race to flag their iconic luxury hotel brands in the Indian hospitality market. The hotel site being fought for is in Mumbai, and the project is coming up in the upmarket Worli area on Dr Annie Besant Road. While one of them is a second-time entrant, it will be an India debut for the other challenger.
Mandarin Oriental Hotel Group and Starwood Hotels & Resorts are in the advanced stages of discussion with Mumbai-based realtor Vikas Oberoi-promoted Oberoi Realty Ltd to lock-in the hotel site for their respective brands. The brands on offer include the flagship 'Mandarin Oriental' from the Mandarin Oriental Hotel Group and St Regis from the Starwood Hotels’ bouquet.
Pegged to be the biggest project from the Oberoi Realty stable, ground work on this 3.1mn sq ft land parcel has already started. Located between the Crompton Greaves building and Grasim headquarters, the plot used to be a slum and will now be redeveloped. The slum dwellers will be relocated to a nearby area. Oberoi Realty has already hired South Korean construction major Samsung Engineering & Construction (Samsung E&C) for this project. The firm was the lead contractor for Dubai’s Burj Khalifa, the world’s tallest tower at 828m.
A senior official at Oberoi Realty said that the company is the final stages of negotiations with Mandarin Oriental and Starwood Hotels & Resorts for a possible association and that a final announcement is likely to be made very soon. “Slum dwellers at the three different parcels will be rehabilitated to one site. This will completely free up the 3.1 mnsqft, wherein 0.4 mnsft will be allocated for a five-star luxury hotel, 0.6 mnsft for commercial office space and 2.1 mnsft of branded residency,” said the official.
The Goregaon-based developer expects a revenue of Rs7,500-8,000 crore from this project, the official added. Vikas Oberoi, managing director of the company, declined to comment.
Once the hotel-cum-branded residence operator is finalised, the duo will enter into a 25-year contract. Oberoi Realty is planning to launch the residential segment sales by June 2011.
Mandarin Oriental has had a short stint in the Indian hospitality market through an association with IHHR Hospitality Ltd's flagship spa destination called Ananda in the Himalayas in Rishikesh. For St Regis however, this will be the luxury operator's first signed hotel if the agreement between Starwood and Oberoi Realty goes through.
Officials of Mandarin Oriental Hotel Group could not be reached for a comment, while those at Starwood denied having signed any agreement for their St Regis brand in India. “Starwood has been exploring opportunities for a partner to bring the St Regis brand into India and Mumbai is one of the cities apart from Delhi and a couple of others that we are looking at. While we are in talks with potential partners, we do not have anything signed as yet,” said Nikhil Manchharam, vice-president, aquisitions and development, Starwood Hotels & Resorts Pvt Ltd for India, Bangladesh & Maldives.
Oberoi Realty has also signed a letter of intent for a redevelopment project in the western suburbs and the final development agreement would be signed in a month. The realtor expects to generate Rs 15,000-20,000 per sq ft from the sale component. The company is also launching Oberoi Exquisite phase II of 1.4 mnsft and 3.3 mnsft development of Oberoi Exotica at Mulund at Rs 7,000-8,000 per sq ft.
Mandarin Oriental
A global hotel investment and management group, Mandarin Oriental currently operates (including those under development) 42 hotels representing over 10,000 rooms in 27 countries – 18 hotels in Asia, 12 in The Americas and 12 in Europe, Middle East and North Africa. The hotel company defines Mandarin Oriental as a family of individual hotels and resorts, each with their own distinct personality yet inherently linked to their exotic oriental roots. In addition, the group operates, or has under development, 13 Residences at Mandarin Oriental, connected to its properties. The Group has equity interests in many of its properties and net assets of approximately $2.1 billion as on June 30, 2010.
St Regis
Starwood's St. Regis brand was created by Colonel John Jacob Astor IV with the idea of developing a new style of luxury, focused on tangible advancements in the comforts afforded the wealthy. These innovations were debuted inside Astor’s classic Beaux Arts landmark, The St. Regis New York, when it opened in 1904 on 55th Street and Fifth Avenue. Before his untimely demise aboard the Titanic, Astor was able to fulfill his vision of creating a hotel where gentlemen and their families could feel as comfortable as they would as guests in a private home. Currently there are 40 The St. Regis hotels across the globe (including those under development). Middle East, Europe, Central & South America, Asia Pacific, Africa, Mexico and North America.
(My colleague in DNA Money, Pooja Sarkar contributed to this story)
No comments:
Post a Comment