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Similarly, Ginger Hotels has signed a hotel which will
be on the top floor of a mall in Ludhiana. The company
has signed for three similar projects in Amritsar, Mohali
and Ahmedabad.
Developers like Phoenix Mills and DLF also plan such
hotels in various cities. Phoenix Mills has planned
one hotel each at its four shopping complexes, called
Market City, in Pune, Bangalore, Agra and Kurla in Mumbai.
Shishir Shrivastava, CEO, Phoenix Mills' hospitality
division says: "This is a concept that hotels have
been following worldwide and is just catching up in
India. The hotels are keen on it as they do well in
the vicinity of a commercial hub."
Adds an analyst, "Its a win-win situation for
both the hotelier and the mall developers and owners.
While the hotel gets off the ground quickly, the developer
is keen on finding business where they can rent out
a large amount of space at their malls."
What works in favour of the hoteliers is the cost factor.
For instance, a 100 room stand alone Ginger hotel will
cost the company (excluding the variable cost of the
land) anywhere between Rs 13-15 crore — 30 per
cent more than what it would cost it over a mall which
would be anywhere between Rs 9-11 crore ($2.2- 2.7m).
The general operative model these hotels adopt is renting
the top or higher floors of the mall. The lower levels
attract high end retail area which will be open to visitors
in general. These hotels will have a separate driveway,
entrance and elevators for their customers.
Says Prabhat Pani, CEO, Ginger Hotels, "Hotel
in the malls are a value add to the customer considering
malls provide with wide range of food and entertainment
options to its customers which saves us from spending
on real estate cost for separate food and beverage outlets
or a restaurant unlike at our other properties."
Vikram Bakshi, the Franchisee of McDonald's has a similar
operative model. He is opening service apartments which
are a part of the malls. One such concept is coming
up in Manesar, Gurgaon where the shopping mall gives
space for organised retail while the substantial portion
is devoted to service apartments which are in great
demand with visiting businessmen who spend longer periods
ranging from a few weeks to a few months .
Says Bakshi, 'there is enough demand from such people
who come alone or even with families for a longer term
and thus expect lower prices and also a residence type
of living. We provide them with family type of living
conditions.'
Bakshi plans to sell the retail space to give him the
needed cash flow and the rental from the apartments
a continuing income. 'We hope to replicate the model
in many locations throughout India before coming out
with an IPO,' he informs delWine.
While budget hotels are feasible to have on these malls
as they are no-frills brand, developers are considering
opening even luxury brand hotels on the property they
own.Phoenix Mills is peing Shangri-La, a five-star luxury
hotel atop the Phoenix Mills' mall in Mumbai. The company
is also looking at having more such luxury hotels.
DLF is also considering building a luxury hotel on
the Mumbai Mill property it had purchased last year
and which it is planning to convert into a shopping
mall.
Resource: http://www.business-standard.com
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