DB Realty, a domestic real estate fund, which is setting up a 320-room 5-star property in Goa, has tied up with Hyatt International for managing and marketing the property.
Once completed, Hyatt Goa will be the first 5-star hotel with Hyatt International’s Grand Hyatt brand name, outside Mumbai. DB Realty is investing around $80 million in the venture. The project is likely to be completed by the second quarter of 2009.
DB Realty managing director Shahid Balwa said they plan to focus on all main real estate verticals such as residential, commercial, retail and hospitality. He said India’s booming economy will necessitate the development of tier-II towns in the next five years. Keeping that in mind, the fund has invested in building an exceptionally exquisite beachfront hotel property in Goa.
DB Realty has already received around $50 million PE funding from Lehman Brothers and IL&FS. Another PE fund, Trikona Trinity Capital, had picked up 5.92% stake in DB Realty. The fund has already developed over 12 million sq ft of realty across residential commercial, retail and hospitality formats. Goa already has many major 5-star hotels like the Taj group, The Leela, Radissons, Bharat Hotels and also a 7-star resort owned by Grand Intercontinental in south Goa.
According to a study by Goa Chamber of Housing Association (GCHA), Goa will require over 1,10,000 hotel rooms by 2016. Currently, the state has 45,000 beds across 100 classified hotels and by 2010, the state will need 35,000 additional beds — 15,000 in the star category and 20,000 in the non-star category. While plans for many hotel projects are in the pipeline, the fact remains that Goa at present faces a shortage of quality rooms.
According to GCHA president Dutta Naik, “The hotels available are less, obviously prices will shoot up.” Goa has been consistently registering an average occupancy of 61% in the past couple of years, while average room rate has grown steadily by 15% every year.
Source: Economic Times