Hyatt Regency in Calcutta: A shape of things to come

New Delhi, Aug. 22: Arun Kumar Saraf-owned Juniper Hotels is all set to float a new company which will own the ‘yet-to-be-built’ Hyatt in Bangalore. The group is also planning to expand into cities like Chennai and Hyderabad.

Saraf told The Telegraph, “In order to save ourselves the possibility of landing into debt, we have decided to float a new company, which will have a similar equity structure like Juniper Hotels. At the moment, we have neither decided on the name and nor the equity structure of this company.”

Juniper Hotels holds only one hotel in India — the recently-opened Rs 650-crore The Grand Hyatt, Mumbai. This hotel is a 50:50 joint venture between the Saraf Industries and few affiliates of Hyatt International.

Saraf said the company is close to buying a four acre plot costing Rs 50-60 crore at a prime location in Bangalore. The property will be developed in such a manner that it will have a hotel and service apartments. The deal to purchase the land will be signed next month.

The total estimated cost of this new 350-room five-star hotel is expected to be around Rs 270-290 crore, he said. The owners plan to open the hotel by 2007. The construction will, however, begin by the middle of next year.

Arun Saraf is also one of the owners of Asian Hotels, which is promoted by the Sarafs, Jatias and Guptas. Together they own the Hyatt Regency in Delhi, Calcutta and Mumbai. These properties are, however, managed by Hyatt International.

Saraf said this was one of the largest investments made by an international hospitality chain in the country. Hyatt International, part of the Hyatt group, also owns brands such as Hyatt Regency, Grand Hyatt, Park Hyatt and Hyatt Resort and Spa.

While average room rates (ARRs) of most five-star hotels in India have tumbled from a peak of Rs 6,000 per night in Delhi in December-January to Rs 4,000 per night, Bangalore in contrast has seen the ARRs jump from Rs 7,000 in January-February to Rs 8,500- 9,500 per night at present.

Created by an international team of designers and consultants, Grand Hyatt Mumbai has been conceived by the Chicago-based architecture firm, Lohan Associates. With approximately 10 acres of mixed-use development, the complex includes 547 guest rooms and suites, the Grand Club (hotel's executive floors) and 147 service apartments known as Grand Hyatt Residences.