Newstrack

Nirmal Lifestyles eyes 10 hotel cum convention projects nationwide

Ropes in Accor for first 3000 rooms across all categories

Bhisham Mansukhani - Mumbai

Real estate developer Nirmal Lifestyles is mulling the possibility of up to 10 hotel and convention projects across the country. Nirmal Lifestyles recently signed a management agreement with French hospitality major Accor for developing what it touts as India's largest single hospitality precinct in Mulund, Mumbai.

Apart from the 1,080 rooms spread across five hotels, all Accor brands including two Sofitels (five-star), a Novotel, Grand Mercure Residences (both four-star) and an Ibis (three-star), the precinct will comprise a convention centre with a capacity of 3,000. The agreement covers a total of 3,000 rooms to be developed over the next five years, spread across 10 `destination malls' (hotel-convention centre template). Accor is also looking at developing more such projects and according to its top officials, "local communities (read state governments) and developers will drive targets for the number of hotels and convention centres in India."

Nirmal Lifestyles Group CMD, Dharmesh Jain told Express Hospitality, "Nirmal Lifestyles is planning to develop 10 destination malls in the next five years across the country for which we will consider the possibility of further tie-ups with Accor. The 1,080 rooms we will develop in the Mumbai hotel precinct are part of the total of 3,000-room deal we have signed with Accor. The potential cities for the destination malls include Pune, Bangalore, Nashik and Ahmedabad and the hotels will most likely be branded across Sofitel, Novotel and Mercure."

Accor SA CEO, Gilles Pelisson said, "The mixed-use concept, which will be a highlight of this hotel precinct is one of our leading strengths, which we have emphasised on worldwide. We are currently working on several other such projects that will have a convention centre. These projects are spread across the country. We can't put a number to it as yet as all the projects are at various stages of completion or bidding process. It is safe to say that investment in convention centers in this country is a winning one."

Pelisson also mentioned the likelihood of introducing more of Mercure's brands apart from its current service apartment brand in India and would make some `significant announcements' within the next year. Apart from its management agreement with Nirmal Lifestyles, Accor has a 40 per cent investment in a Sofitel it is building along with Naman Developers in Bandra Kurla Complex. It has also tied up with Emaar for building over 100 hotels under its budget brand Formule One. Accor entered India's hospitality market in 2004 through a JV with InterGlobe, creating InterGlobe (60:40) JV for real estate development and 70:30 for hotel management. The company is currently developing six hotels under economy brand 'Ibis'.