India Expo Centre and Mart builds 134-room hotel at ₹100 crore | Mint
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Business News/ Companies / News/  India Expo Centre and Mart builds 134-room hotel at 100 crore
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India Expo Centre and Mart builds 134-room hotel at ₹100 crore

The company will deploy more capital to set up another hotel by 2024 of a similar scale. The company said it has been profitable since its inception in 2004, barring the covid period when meetings and events were suspended, and its second hotel will be built from its IPO proceeds

Rakesh Kumar, chairman, India Exposition Mart Ltd.Premium
Rakesh Kumar, chairman, India Exposition Mart Ltd.

NEW DELHI: India Expo Centre and Mart, an enterprise of the ministry of textiles and handicrafts as well as exporters, based in Greater Noida, has built an upscale hotel on its 56 acre premises. The hotel will have 134 rooms and will open for business around mid December. 

The company said its project cost was around 100 crore which it deployed during the pandemic years of 2021-22. The hotel is being operated by Four Seasons Hospitality Pvt. Ltd that also has a catering arm called ‘Seasons’.

Rakesh Kumar, chairman of the India Exposition Mart, said, “This business hotel is the first of its kind in the country with a stay option within the trade fair venue. The venue is booked out about 260 days a year and we expect it will do good business as it is attached to the main expo center," he said.

Following this, the company will deploy more capital to set up another hotel by 2024 of a similar scale. The company said it has been profitable since its inception in 2004, barring the covid period when meetings and events were suspended, and the second hotel will be built from its IPO proceeds.

The Noida-based company had filed its draft red herring prospectus (DRHP) for a 600 crore initial public offering in March. India Expo Centre and Mart was set up as a special purpose vehicle company with Export Promotion Council for Handicrafts, or EPCH, the Greater Noida Authority and private exporters. Its board consists of directors from the Greater Noida authority and the ministry of textiles as well as exporters. It is in the top five largest integrated exhibitions and conventions venues in the country and is spread over 56 acre.

In its DRHP, the company stated that its revenue from operations was at 10.66 crore in FY21, down from 154.4 crore in FY20. Its loss for the corresponding period was 5.3 crore, down from a profit of 44.89 crore in FY20 primarily due to the pandemic.

The venue hosts about 40 conferences a year including the auto expo and hopes the hotel will bring it more sustained business. It has about 23 lakh square feet of built up area and hosts business-to-business exhibits, conferences, congresses, product launches, and promotional events, among others.

India has about 1.5 lakh branded hotel rooms. Based on the research that hospitality consultancy Hotelivate has done, there are about 59,000 new rooms proposed to come across the country in the next five years. Of this, 72% or about 35,000 rooms are under active development, said the consultancy.

In 2020, pre-Covid, only about 35,000 rooms were being developed. The active development ratio has gone up by at least 10% now when compared to 2020. The consultancy said it takes into account projects that can be eligible to become a “chain-scale“ hotel.

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ABOUT THE AUTHOR
Varuni Khosla
Varuni Khosla is a journalist with close to 14 years of experience in writing business news stories for mainstream newspaper companies like Mint and The Economic Times. She reports and writes on luxury and lifestyle brands, hospitality and tourism news, the business of sports, the business of advertising and marketing and alcohol brands.
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Published: 15 Nov 2022, 03:10 PM IST
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