Downfall in hotel industry revamps them as luxury houses
Posted on: 19/Mar/2014 5:18:18 PM
With the star hotels planning to revamp into luxury houses, it is evident that they’re at the down range of their business. Speaking to R. Kumar, the chairman of Confederation of Real Estate Developers’ Associations of India (CREDAI) Tamil Nadu and managing director of Navin Housing and Properties Pvt Ltd, he said more numbers of real estate business men are showing interest towards buying such star hotels in Chennai. And, at the same time, star hotel owners do not want to invest more in refurbishing their hotels, rather prefer to sell them for a good amount to real estate people. “Though the boom in real estate has significantly reduced, they have now slewed their focus on such hotels.
The list includes JW Marriot, Breeze hotel, Atlantic hotel, etc. When enquired about the changeover in hotel industry, Sivaramakrishnan, head of residential services CBRE, India, stated there are few other reasons associated with this besides to the downfall of the industry. Most property developers report that it is an easier option to invest on ready-built property instead of constructing a new one from the very scratch.
