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Infotech-fuelled hotel boom in South India

South India-based property developers such as Prestige, Brigade and Embassy are betting high on the hotel segment, due to growing demand from the information technology and e-commerce sectors.


This is in contrast to the trend in north and west, where realty majors such as DLF and K Raheja are staying away from building hotels. Combined, the top southern companies are planning to add a fourth of their current stock or 5,500 hotel rooms in the next couple of years in Bengaluru, says JLL India. Rough estimates suggest the developers will need to spend Rs 3,300 crore to build these hotels — an upscale room costs Rs 55-65 lakh to erect. As of March 2015, the number of hotel rooms across major cities in India was 112,284 and the upcoming supply was 49,000.

 Most developers are building these hotels as part of their residential or commercial projects. Prestige Group is building three hotels — Bengaluru Whitefield in Prestige Shantiniketan, The Marriott Bangalore Prestige in Prestige Golfshire and The Conrad from Hilton International on Kensington Road. Prestige plans to spend around Rs 750 crore to build 1,000 rooms in the upcoming hotels. All these are expected to become operational in second quarter of 2016 or the third quarter of 2017.