The project is one of the five star hotel projects proposed for development under build-own-transfer basis by the state tourism department in April, 2005.
Of the five projects, one 5-star and two 3-star hotels, which would be located within the hi-tech city (Madhapur), would be taken up in the first phase. Of these three projects, process for the 5-star hotel proposal has now reached the bidding stage.
According to officials, 20 out of the 34 firms that gave expressions of interest for the 5-star hotel project have submitted their RFP (request for proposal) to the tourism department.
Of them, 18 have been shortlisted for submitting their detailed project reports. Besides the existing players like ITC, GR Thanga Malgai, Viceroy Hotels and Taj GVK, local builders such as Prajay Engineers Syndicate and My Home Limited too have joined the fray.
With an envisaged capacity of 300 rooms, the five-star hotel project is estimated to cost about Rs 100 crore (Rs 1 billion).
Owing to the request of some firms, the department has extended the deadline for submission of detailed bids by a week up to July 27, 2005, officials told Business Standard on Wednesday.
All these projects are supposed to be completed in 24 to 30 months period. According to officials, the exact time frame will be finalised in the pre-bid meeting likely to be held next month.
The tourism department undertook the initiative for capacity addition in the star hotel segment as the existing available capacity in Hyderabad is too low to host major events like the annual general meeting of the Asian Development Bank, which is scheduled to be held in May, 2006.
While the existing capacity of star hotels in Hyderabad is about just 2,000 rooms, the three hotels proposed by the tourism department will be adding another 700 rooms. Each of these projects are estimated to cost around Rs 100 crore.
Besides ADB meeting, other major events such as Pravasi Bharatiya Sammelan, National Science Congress and other important conventions are scheduled to be held in Hyderabad at the International Convention Centre coming up at Madhapur. The ADB meeting is expected to see around 5,000 delegates.
"Even in a small city state like Dubai, the room capacity is more than 20,000. Imagine the requirement of the rooms to host big international events," V Nagi Reddy, secretary of tourism department, said, adding that hospitality industry is going to emerge as one of the important business activities in Hyderabad with huge employment potential.
Keeping with the demand-supply gap, most of the star hotels in the city, including Hotel Viceroy and Taj GVK are now going in for additional capacity at their existing locations.
Star Business