The Delhi government is planning to allow hotels to build and sell apartments in their complexes in Delhi, a move that may benefit several hotels in the city except those that fall within the restricted Lutyens’ Bungalow Zone, sources in Delhi Development Authority said. Hotels will be allowed to use the 20 per cent of the total built-up space, where they are permitted to set up a commercial and retail wing, to develop apartments, a senior official at the Delhi Development Authority said, on the condition of anonymity.
The move will significantly reduce the initial capital requirement for hotel projects. Hotel developers will be able to utilise the funds available through residential pre-sales to offset the level of debt funding, said Siddharth Thaker, Managing Partner at Prognosis Global Consulting.
The permission to build and sell apartments could benefit several older hotels such as the Hyatt Regency, The Grand, Qutab Hotel, The Lodhi and The Leela Palace. owever, the concession will not apply to the Taj Mahal, Shangri La, Le Meridien, The Oberoi, Taj Palace, ITC Maurya and Claridges, all of which are in the Lutyens’ Bungalow Zone.
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