Hotelier Saraf follows footsteps of Buddha with Bodh Gaya project
source:hindubusinessline
Aiming to grow: Arun
Saraf, owner of Hyatt Regency, Chennai. — Bijoy Ghosh
Chennai, Aug. 5:
Leading hotelier Arun K. Saraf, who owns many of the properties
managed by Hyatt in the country, has teamed up with the Bihar Government and
Magadh University to develop a resort at Bodh Gaya through the public private
partnership model.
Saraf has floated a special purpose vehicle, Footsteps of Buddha
Pvt Ltd, for the project . While the government of Bihar has allotted 25 acres
of land near the Mahabodhi temple, the company will invest around Rs 140 crore
to build a 160-key resort, in the first phase, with a convention space that can
accommodate 1,000 people.
Japanese connection
According to Saraf, a lot of Japanese corporates have expressed
interest to chip in with funds for the project.
“Though we have not yet decided, we may consider taking some of
them on board,” he said. The Japanese companies may be given a 35 per cent stake
and “we can, in fact, have a zero-debt company,” he adds.
Other projects
In addition, he is building nine upscale and mid-market hotels in
various cities such as Raipur, Hampi, Lucknow, Sarnath, Guwahati, Ahmedabad, New
Delhi, Jaipur, and Thiruvananthapuram.
These projects are being developed by two of his companies:
Juniper Hotels Pvt Ltd and Chartered Hotels Pvt Ltd.
These hotels will be managed by various Hyatt brands such as
Regency and Hyatt Place.
Saraf, Managing Director of Asian Hotels East Ltd (a listed
company), has six properties in India and Nepal with a total inventory of over
2,000 rooms, and majority of them are being run by Hyatt.
investment
And, the upcoming properties will add another 3,000 rooms taking
the total to 5,000 rooms by the end of 2015. The investment tab will be Rs 2,400
crore, which will be a mix of debt and equity.
Responding to a question on the drop in demand and increasing
supply in the Indian hospitality industry, he said at present there may be a
glut in supply, but in the next two to three years it will be absorbed.
slowdown
He says though there is a general slowdown, things will bounce
back soon.
The Indian growth story has not ended. “In my opinion, it is yet
to start. We are just scratching the surface now,” he said.
ravikumar.ramanujam@thehindu.co.in
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