Kanakia Group ropes in Hyatt to manage its Goa hotel
in Property Time |Property News !
Wed Jan 01, 2014 8:30 pm
MUMBAI: Realty developer Kanakia Group's hospitality arm has roped in US-headquartered Hyatt Hotels Corp to manage its upcoming 150-key hotel in Goa.
"We have tied up with Hyatt for our Goa hotel. It will be a Hyatt Place property," Kanakia Group chairman Rasesh Kanakia told ET. The company has completed acquisition of about 2.5 acres of land on Condolim Beach for the proposed property, he said.
The cost of land and construction is expected to be about 150 crore, which will be financed through a 50:50 debt-equity structure, the chairman said. The hotel is expected to be ready in the next 18 months. In 2012, Mumbai-based Kanakia Group had sold its entire stake in multiplex chain Cinemax India for 400 crore. The group plans to focus and invest funds from this stake sale in its real estate and hospitality ventures, its chairman said.
"We are looking to build a portfolio of hotels in our hospitality subsidiary before we take a call on offloading stake to a strategic partner at entity level," Kanakia said. "We are also looking at more beachfront options in Goa."
The Goa property-for which Kanakia said all necessary approvals are in place-will be the developer's third hotel in the country.
The group owns the 331-room Marriott Courtyard hotel in Mumbai and a 185-key Novotel property in Ahmedabad.
For hospitality major Hyatt, the management contract for the Goa hotel will make it its second Hyatt Place property in India, the first being at Hampi, in Karnataka. The hotel chain already has 17 properties in the country.
In the real estate segment, the Kanakia Group plans to expand its reach in an around Mumbai Metropolitan Region and has acquired an aggregate 200 acre of land in Panvel and Virar near Mumbai, Kanakia said. The company is currently executing 1.3-million-sq-ft of residential projects and 1.5-million-sq-ft of commercial projects.