Trans harbour link, airport to bring more hospitality firms to Navi Mumbai

Source: The Economic Times

Hotels of various categories, from budget to luxury, are coming up in and around Navi Mumbai, driven by transformative infrastructure projects such as the Mumbai Trans Harbour Link (MTHL) and the forthcoming international airport.

The hospitality market is witnessing a surge in investments in the region, with Navi Mumbai, Panvel, and Khopoli emerging as the prime locations for investors, said hotel industry executives and transaction advisory firms.

Most of the leading hospitality brands are either looking to step up their presence or are entering the region.

American hotel operator Radisson Hotel Group that currently has one property, Country Inn & Suites by Radisson at Turbhe in Navi Mumbai, recently signed up for a 100-room hotel in Khopoli and has another one of similar size coming up soon.

The MHTL, which opened to the public on Saturday, is set to decongest Mumbai by improving connectivity between the island city and mainland and promoting the development of the Navi Mumbai region.

This significant infrastructure link spans a length of about 21.8 km. It is expected to facilitate traffic movement from Mumbai towards Navi Mumbai, Navi Mumbai International Airport, Jawaharlal Nehru Port, Panvel, and Alibaug up to Pune and Goa. Ulwe and Panvel will be the key beneficiaries of the MTHL project in Navi Mumbai.   106876243 Navi Mumbai is poised to become the next frontier in real estate development, witnessing a surge in strategic investments and infrastructural advancements,  said KB Kachru, chairman emeritus and principal advisor, South Asia at the Radisson Hotel Group.

The hotel group has an early mover’s advantage in the region with an existing hotel and the recent signing of the 100-room Radisson Hotel.

“This development underscores our commitment to delivering exceptional hospitality experiences in one of the region's dynamic and emerging markets,” said Kachru.

Noesis Capital Advisors, a hotel consulting and investment advisory firm that facilitated the transaction for the new hotel property, is also in active discussions for two more hotel deals in the same region.

“As connectivity improves, the hospitality potential in the region is projected to increase by five times over the next five years,” Noesis founder and chief executive Nandivardhan Jain said.

Suhail Kannampilly, CEO, Concept Hospitality, which runs the Fern Hotels & Resorts, sees the entire Mumbai coastal line opening up in a big way with the MHTL.

“With better connectivity, destinations like Alibaug, Ganpatipule and Khopoli are set to gain further traction. We have signed for a 100-room property in Alibaug and are expanding our existing ones in the other two,” he said.

Concept, which already operates an 80-room property in Turbhe, is in discussion for a 100-room property near the DY Patil Stadium in Nerul in Navi Mumbai.

The Navi Mumbai market currently features 1,486 operational branded hotel rooms, with an additional 900 rooms proposed for future supply, estimates Noesis.

Mariott, Hyatt Regency and Radisson are some of the brands that are in various stages of development in Navi Mumbai and are set to become operational within four years, said Jain of Noesis.

Others, too, are looking to step up their presence.

JB Singh, president of InterGlobe Hotels that owns and operates Ibis and Ibis Styles brand of hotels, said his firm has been watching the infrastructure development in the region closely and is keen to have a presence there. Mumbai is a key focus city for us as we already have four operational hotels and one under construction near BKC (Bandra Kurla Complex). We will commit only if it checks all the boxes with respect to price, location, demand drivers, etc.,” said Singh.

“The new airport will certainly act as a catalyst to drive ADR (average daily rates) in the region and if we undertake to develop something closer to the airport; it has to be at least a 200-room property,” he added.

InterGlobe currently has a 196-room Ibis Hotel operational at Turbhe in Navi Mumbai which is well located to cater to new airport demand, he said."