The company is planning to develop a 300-key property as part of its proposed integrated development spread across nearly 75 acres. This will be the first five-star hotel to come up in Thane near the country’s financial capital Mumbai.
“Among the key brands being discussed for the proposed hotel property are JW Marriott and Grand Hyatt. The deal is expected to be inked soon,” said one of the persons mentioned above.
Oberoi Realty already has a relationship with Marriott International through an operational five-star hotel, Westin Mumbai Garden City in Goregaon, a suburb in Mumbai. This hotel with a total 269 keys started operations in May 2010.
Besides, Oberoi Realty has another upscale mixed-use project, Three Sixty West, which includes branded residences and a five-star category 220-key hotel to be managed by the Ritz Carlton, part of Marriott International. This will not only be the third Ritz hotel in India following the two already operational properties in Bengaluru and Pune, but also the largest in the country.
The company is planning an integrated development with total 15 million sq ft real estate on this 75-acre Thane land parcel. This will comprise premium residential, office and retail projects along with an international school. The company is expected to invest around Rs 10,000 crore to develop the project in phases.
The first phase of the project with an estimated development of 3-4 million sq ft including the hotel, residential and school is expected to be started soon. The project’s hotel and international school part are at design stage and the company is likely to announce the brands shortly, Vikas Oberoi, CMD, Oberoi Realty mentioned in the company’s earnings conference call recently.The company is looking to launch at least 1 million sq ft development in this residential-led township project every year. The project’s total revenue potential is estimated to be around Rs 30,000 crore across the development period of 15 years. The project’s first phase, which is likely to be launched later this year, is expected to be completed over 3-4 years.
ET’s email queries to Oberoi Realty, Marriott International and Hyatt remained unanswered till press time.
The entire 75-acre contiguous land parcel comprises three plots that the developer has acquired in separate transactions from their respective owners.
On Tuesday, Oberoi Realty entered into an agreement with NRB Bearings to acquire the latter’s around 6.4-acre land parcel in Thane’s Pokhran Road 2 along with structures thereon. The company, according to industry sources, will be paying over Rs 170 crore for this acquisition. The land parcel is contiguous to the existing 68-acre plot owned by Oberoi Realty.
In February, the developer acquired air-conditioning and commercial refrigeration company Blue Star India’s 9-acre land parcel in the same vicinity for nearly Rs 200 crore. The Blue Star India’s land parcel is located on Thane’s Pokhran Road 2, next to GlaxoSmithKline Pharmaceuticals’ 60-acre plot that Oberoi Realty had acquired in 2019 for Rs 890 crore.
Investments in the Indian hospitality sector are likely to exceed $2.3 billion or around Rs 19,000 crore over the next two to five years, according to the first-ever hospitality report released by real estate consulting firm CBRE South Asia. The report said the total investment during 2020-23 is likely to exceed $0.4 billion or around Rs 3,294 crore.
