Embassy Group to invest Rs650 crore to develop 560-room hotel in Bengaluru | Mint
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Business News/ Companies / Embassy Group to invest Rs650 crore to develop 560-room hotel in Bengaluru
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Embassy Group to invest Rs650 crore to develop 560-room hotel in Bengaluru

The hotel, to be managed by Hilton Worldwide , is part of Embassy Group's mixed used developmentEmbassy Manyata Business Park

The company, which is backed by Blackstone Group LP, currently owns one 247-room Hilton Hotel at Embassy Golf Link park in east Bengaluru.Premium
The company, which is backed by Blackstone Group LP, currently owns one 247-room Hilton Hotel at Embassy Golf Link park in east Bengaluru.

Mumbai: Real estate developer Embassy Group said it will invest 650 crore to develop its second hospitality project, a 560-room hotel to be managed by international hotel chain Hilton Worldwide Holdings Inc.

Located in north Bengaluru, the project is part of its mixed used development—Embassy Manyata Business Park—which has around 12 million sq. ft of office space. The hotel would comprise two properties to be branded Hilton Hotels & Resorts and Hilton Garden Inn. Construction is likely to start by next year and is expected to be completed by 2020.

The company, which is backed by Blackstone Group LP, currently owns one 247-room Hilton Hotel at Embassy Golf Link park in east Bengaluru.

“Our first Hilton hotel is running at nearly 100% occupancy. That really set the pace for us going forward. We did have some learnings from it. Our clients and tenants wanted it at two price points. So we have two hotels at two price points—that is the Hilton, which is the upscale one, and Hilton Garden, which is one step lower than that," said Sartaj Singh, president, Embassy Hospitality.

Singh said the company is already evaluating developing its third hotel project at Embassy TechVillage, another business park in the city. The group plans to set up a hotel each across all the business parks that it operates.

“At each of the large business park going forward, we would like to have a hotel after understanding the nuances of the local market. We are already evaluating the next two set of hotels at Embassy TechVillage business park. It would be around 400 to 500 rooms," he said.

Embassy Group currently operates three business parks in Bengaluru and one in Pune.

Property developers and private equity efunds have been slowly returning to the hospitality sector years after they left it to concentrate on their core business.

However, unlike the 2006-07 boom, most builders are choosing locations such as information technology (IT) parks and mixed-used development projects with captive demand for hotel rooms from business and domestic travellers.

“There are close to 90,000 people working in Embassy Manyata Business Park and just under 60 company operating within the complex. The hotel is conceptualised to service the internal customer base of those corporate occupiers but also to cater to external market as well. It would be first major business hotel as one comes from the airport to the city," said Mike Holland, chief executive officer, Embassy Office Parks.

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Published: 05 Oct 2016, 08:56 PM IST
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