Your search results

APCRDA to give plots for star hotels construction in Amaravati.

Posted by on August 11, 2018
| 0

Amaravati Star Hotels
Amaravati: With an objective to meet the ‘increasing’ demand for hotels and hospitality sector in Amaravati, the AP Capital Region Development Authority (APCRDA) has initiated the process of establishing eight more star hotels in Amaravati. In order to attract private players for this, the authority has decided to offer plots to noted groups on freehold basis. It may be recalled that the authority, in June, had given letters of intent (LOIs) to eight star hotel chains who agreed to set up shop in the capital.

Even though the CRDA, in 2017, had invited request for proposal (RFP) with a leasehold clause, the process had been invalidated as the hotel managements showed no interest.

“They were apprehensive that after the lease period expires, the authority may seek a change in the agreement. So, they wanted to buy the land outright and build the hotels. That is why we invalidated the previous RFP and floated a new one,” said a senior official involved with the project. Under freehold clause, the private player will have to pay the money for the land upfront and then begin the construction, unlike the leasehold where the land would be given for lease for a certain period of time.

The official explained that plots for two five-star hotels, one four-star and five three-star hotels will be given to the interested party on freehold basis. Five-star hotels will get 4 acres of land, four-star will get 2 acres, and three-star will get 1 acre of land.

Each acre is priced at 1.5 crore, and the sale deed will be executed only after the hotel meets the norms set by the authority. “While three three-star-hotels are proposed along the Seed Access Road, another one will be proposed near Sakhamuru. One five-star hotel is proposed to come up near Amrita University. We are in the process of finalising the locations for the rest of the hotels,” the official added.

When asked if there was a demand for tens of star hotels in Amaravati, the official said that the demand would go up significantly in the next three years. A study by the CRDA shows that by 2025, six lakh overnight domestic tourists are expected to visit Amaravati annually, out of which 33 per cent are expected to be business tourists. Similarly, over 10,000 foreign tourists are expected in the next six years.

“Top-level people are still preferring Hyderabad hotels while visiting Amaravati,” the official observed. The hotels, once the agreement is done, will have to finish the construction of the facilities in three years. Meanwhile, the hotels which were given LoIs are in the process of making payments. Once the payment is made, the construction of the hotels will begin.

Source: The new indian Express