Kshitij Investment, the real-estate investment arm of retail titan Kishore Biyani, which is planning to roll out around eighteen ‘Market Cities,’ at regular intervals beginning 2008, is betting big on hospitality business. It is expected to manage an inventory of 3,000 hotel rooms through a combination of business and boutique hotels and service apartments, according to a report in DNA India.
Market cities, to be located within city limits, would typically be spread over 5 lack sq ft (25 acres). Besides retail, they would offer leisure, entertainment, recreation and hospitality. Added features, among others, would include convention centres, boutique hotels and service apartments. Some of these Market cities are expected to come up in Mumbai, Bangalore, Chennai, Kochi, Hyderabad and Thiruvananthapuram.
Against an estimated demand of 1,30,000 rooms, the country is currently facing a shortage of about 30,000 hotel rooms. By 2010, 155 hotel projects under construction would, however, to some extent, ease the presure by adding 45,000 hotel rooms.
Market cities are expected to require an estimated investment of $350 million, which would be funded through Kshitij’s — The Horizon International Fund.