The work on both the projects, clearances for which had been received from authorities, according to a report, has been put on hold. Same goes for setting up a chain of four or five star hotels in Bangalore, Hyderabad, Mysore, Mumbai, Chennai, Bhubaneswar, Ahmedabad and Pune.
The decision to hibernate is perhaps the result of financial meltdown resulting in bankruptcy of Lehman Brothers who is believed to have promised an initial contribution of $100 million to the $200 million fund created by the company for the project.
The economic slowdown resulting in downturn of travel and hospitality industry is believed to be another reason for delaying the project.
Kshitij Investment Advisory, which manages the fund for hotel project has, reportedly denied the news of hotel project being put on hold. Brushing aside the apprehensions of delay, Shishir Baijal, CEO of the Advisory has reportedly said, "These things take time. We are still talking and evaluating options."
The fund was looking for plots of 1 to 1.5 acres on which 65,000 to 150,000 sq ft of built-up area would have been developed.
Industry experts say the hospitality industry, like every other sector, is facing a downturn. "The crash of the real estate market is bound to leave an impact on the hospitality sector. Builders are going slow on their projects. Funding issues are also adding to the problem, |