A new Taj hotel in Chennai, which Indian Hotels Company (IHCL) had announced in April, will also feature 123 Taj branded residences in the hotel complex, while Delhi-based BI Luxury Residences has tied up with Oberoi Hotels & Resorts to manage services at its upcoming luxury project in central Delhi.
Jaideep Dang, managing director of consultancy JLL Hotels and Hospitality Group South Asia, said there is a lot of interest from real estate developers for branded hotel managed residences.
“Hoteliers would generally like a hotel component within such villa development. However, we are witnessing that a selected set of hotel companies are now willing to explore high end branded residences without the hotel component as well,” he added.
BI Group is developing 19 boutique apartments next to Oberoi’s flagship hotel in Delhi. The project will be called Trident Residences. The companies are also in talks to develop similar super luxury apartments in Bengaluru and Goa in addition to expanding in Delhi, company executives said.
“Today’s buyers are global and realise the benefits of having amenities such as residents’ lounges, meeting rooms, gyms, etc. that are managed by hotel brands and create the difference on a daily basis,” BI group chairman Shashank Bhagat said. “Also, living in such a development creates a community with multiple layers of security and management.”
BI Group has signed up with Oberoi for a villa project in Bengaluru where land acquisition is underway, he said.
IHCL is partnering with AMPA group for the Chennai project where the residences will enjoy Taj’s “legendary service” and access to the hotel’s facilities, the hotel chain said.
Sanjeev Bhambri, managing director of 3B Group of Hotels and owner of Four Points by Sheraton in Dehradun, said he is in the final stages of discussions for a big land chunk in Himachal Pradesh to build a 250 rooms hotel and 70 villas alongside it.
“Each villa will be more than half an acre to one acre,” he said.
“The demand is there post Covid, and the supply is very less. I’m personally very bullish about this segment,” said Bhambri, who has also signed four hotels with Hyatt in Dehradun, Haridwar, Jaisalmer and Morni in Haryana. He is also considering building 30 villas in Morni.
Prateek Mittal, executive director of Chandigarh-based Sushma Group, said his company has tied up with Sarovar Portico to manage residential project Elementa in Kasauli. “Since, it is a holiday destination, the buyer would want the services that match the standards of a hotel. For residential projects at holiday destinations, we will continue to do such tie ups,” he added.
Nikhil Sharma, regional director for Eurasia at Wyndham Hotels & Resorts EMEA said the chain has a number of branded residences in its portfolio in destinations across Europe and the Middle East. “We have seen success with this model in other regions and are seeing the demand growing in India with other key players in the market launching their own variations,” he said and added that as the demand for leisure travel grows and the hospitality industry continues to evolve, the chain continues to look for new opportunities and ventures.
Dang of JLL said the demand for branded residences is driven by a lot of high net-worth individuals of prominent business cities who are exploring residential options to live and work during summer months or want a periodic escape from the environmental pollution, especially in winters. He said interest is gaining momentum for such projects in Dharamshala, Alibaug, Karjat, Lonavala, Coorg, and Chikmagalur. “Goa, of course, remains the chartbuster as always.”