Making an attempt into the hospitality industry for the first time, VMRDA (Visakhapatnam Metropolitan Region Development Authority) has planned to have star hotels constructed on its prime sites at Siripuram.
Two noted firms have declared the interest in the project and the VMRDA is understood to have given them 5 to 6 business including joint venture, revenue-sharing and outright sale of the sites. According to sources.
Reliable sources close to the development say that the VMRDA have shown many sites to the 2 companies, but their interests are confined to the sites nearby to the VMRDA office. One of the sites was given to Vaibhav Jewellers earlier for a commercial venture but cancelled. Since then, the site has been vacant.
The other site is adjacent to the HSBC where the VMRDA has been planning to set up information technology (IT) towers since long, apart from its recent pursuits with the Software Technology Park of India (STPI) for the project.
Both the companies are keen on undertaking a project involving a three or four-star budget hotel with 100 to 120 rooms on a site in the heart of the city, it is learnt. Though bigger sites were also shown on the city outskirts, the firms are not eager on investing in them.
That the idea seems to go in for a venture in relatively small sites of one acre or more, for manageability and profitability. Now the companies have to choose their investment model and scale of investment.
The companies need to put forth their proposals before their respective boards. Once they got approved the companies need to put forth their proposals before their respective boards. P. Basanth Kumar expressed.
The A. P. Urban Infrastructure and Asset Management Company Limited will play the role of consultant for the VMRDA for taking the proposals forward.
With both the companies actively pursuing the proposals after a positive response from the officials concerned, the sources say, the firms are keen on setting up the hotels on both the sites, if everything goes well.
After a positive response from the officials concerned, with both the companies actively pursuing the proposals, the firms are keen on setting up the hotels on both the sites, if everything goes well, as per sources.