Hotel makes room for office space

KOLKATA: At a time when small hotels and guest houses are mushrooming in residential neighbourhoods across the city, a mid-size business hotel at a fancy address is being converted into a high street retail-cum-office block.
Struggling as a budget hotel for years, Rutt Deen was thoroughly renovated and opened in a new avatar as a business hotel managed by the ITC group a couple of years ago.An annex was constructed on what used to be an ill-maintained lawn, adding swimming pool, banqueting facility and mechanized car park. In the brief period, the 68-room Fortune Select Loudon was in operation, it enjoyed high occupancy.
“The central location of the hotel on Loudon Street made it a preferred choice for business executives. But it never became viable as there weren’t enough rooms to ensure an operating profit after fixed costs. So while the hotel was doing well in terms of occupancy, financially it was a losing proposition and shut shop. Had the hotel had 120-odd rooms, it would have been a viable proposition,” a hospitality industry official said.
Developer Dilip Singh Mehta, who purchased the property from Bipin Kumar Vohra, is now overseeing its transformation into an upscale retail and office address. “We will be a premium facility with space for a flagship store and offices for corporates that aren’t in Kolkata yet but is keen on a presence at a central location,” the Multicon Group director explained.
Mehta is trying to woo a national-level jewellery store for the retail space and overseas banks and service companies with projects in the city for the offices. With the rent pegged around Rs 200 a sq ft against Rs 125-150 that office space in older buildings on Park Street command, realtors believe it will be an attractive officer for MNCs.
While the primary hotel block will be retained, the annex is being demolished to make way for a six storied building that will increase the built-up space from 50,000 sq ft to 75,000 sq ft. The facility will be opened in two phases—one by mid-2015 and the other by 2015-end. The renovation project is pegged at Rs 150 crore.
“The walls on each floor plate are being torn down. After removing the rooms and freeing up space, the interior will be done to create offices. We are in the process of selecting interior architects,” said Mehta.
Though another office block is coming up next door, Mehta is confident Loudon Star—the new name for the address —will be up and running much before the former is ready.