Newstrack

Hoteliers demand check on Delhi-NCR land prices

Suggest long term leasing as possible outcome against bidding culture

Sanjeev Bhar - New Delhi

As the land auctions for hotel sites in Delhi-NCR reel under uncertainty owing to rapid price rise, hoteliers and the travel fraternity demand an end to the illogical process of bidding.

They are urging the government to make the process more transparent and effective. Rajindera Kumar, president of Hotel & Restaurant Association of Northern India (HRANI) said, "The high rates that Delhi Development Authority (DDA) is receiving through auction of land sites is escalating the cost of realty. Further, some land sites are going through an endless process of auctions if they don't fetch a purchaser. This is not justifiable."

Meanwhile, Sanjay Sethi, MD and CEO of Berggruen Hotels, is keen on partnering with the Delhi government for its Key Hotel brand for investments. He said, "The government should without further delay lease out land to hotel companies for development. This could be done in a public-private partnership format, where we will be happy to invest for a joint venture."

The way land sites are being auctioned by DDA has also saddened industry associations. According to Kumar, there are cases where land purchased in auctions is being sold again delaying the hotel development process. "Government should lease hotels or get into build-operate-own agreements, which will enable better results keeping a check on realty prices as well," he suggested.

ASSOCHAM secretary general, DS Rawat, is of the opinion that the best solution would be long-term leasing. He said, "It would be better to lease out whatever possible space is available to developers for hotel development with minimum lease period of 40-50 years instead of 99 years. This will also help government realise better revenues."