Gujarat's builders check into hotel business

AHMEDABAD: Increasing flow of tourists, upcoming industrial projects and income tax benefits are enticing realtors to diversify into hotel industry.
A number of reputed hotel brands have started operations in the state. Brands like Marriott, Ramada, Park Plaza, Tata's Ginger, ITC, Royal Orchid, St Laurn amongst other have opened hotels. Starwood's Aloft and some local players are in line to open star category hotels.
Moneyed builders are developing properties to tie up with reputed brands, which would generate regular income for their firms.Some are foraying into hotel business on their own.
Last year, Pacifica group had tied up with Marriott. Another Ahmedabad based builder Vijay Shah plans to build a 4 star property near Ashram Road. Shah is in talks with a US-based hotel brand to work out a profit sharing business model.
NK Patel, a developer, is in the process of developing a 3 star hotel opposite Gujarat high court on 7500 sq yd land.
"Cent per cent income-tax relief on investment in hotel project excluding land cost lured us to diversify into hotel business," said Patel who plans to run hotel on his realty firm's name.
Galaxy group, which is active in eastern Ahmedabad has plans to develop two 4 star category hotels near Gandhinagar. City-based Dharmdev group, owned by Umang Thakker, has recently opened a budget open on Ashram road. Thakker plans to open three more hotels in the city in near future.
Six months ago, Sankalp group, which has interests in real estate as well food business, entered into hotel space. "We have tied up with Ramada for a 4 star property in Prahaladnagar area," said Kailash Goenka of Sankalp.