08.25.06
DDA bidding hotel lands at unreasonable prices
DDA bidding hotel lands at unreasonable prices
In a study of the land auctions to be done in Delhi for the Commonwealth games in 2010, The Delhi Development Authority (DDA) has grand plans to cope with this shortfall, by carving out specific areas for building hotels. The DDA is looking to make at least Rs 2,669.13 crore - as indicated from the reserve price - from the auction of 10 hotel sites on September 25, 2006.
Delhi at present is short of approx 22000 rooms for the Commonwealth Games and the DDA has planned to auction many sites. Most of these sites are actually not located at nice location from the tourist point of view. The sites at Shalimar Bagh and Wazirpur will not be preferred by tourists visiting Delhi during the Commonwealth Games, as they are not in proximity to the airport and popular tourist spots. So how these hotel even after getting the lands at such high prices will break even. The DDA should think over these facts and should think on making these hotels viable. If the cost of land and Building will be high, then it will affect the average room rate (ARR) of the Hotels which will directly affect the guest for the Commonwealth Games.
Khulla Panga » Blog Archive » Hotel Industry after Commonwealth Games 2010 said,
October 13, 2006 at 3:29 am
[…] Our country, especially Delhi is preparing fast for the Commonwealth games in 2101. I was just going through the Newspaper and saw that the DDA is auctioning hotel sites in Delhi in September 2006. These hotel sites are in Jasola, Dwarka, Shalimar Bagh, Wazirpur and many more sites are there. 10 sites will be auctioned in September itself. […]