Hotel Boom Expected Along Noida-Greater Noida Expressway
The Noida-Greater Noida Expressway is poised to become a prominent hotel hub, attracting significant interest from leading international hotel brands like Marriott, Starwood, Oberoi, and Hyatt. Analysts predict the addition of approximately 2,500 hotel rooms, transforming the area into one of the country's largest hospitality centers.
Upcoming Hotel Projects
Several hotel projects are already in the pipeline, including the Marriott Hotel, Marriott Executive Apartments, and Fairfield Inn. The proximity to New Delhi, Agra, and the Formula One track in Greater Noida is expected to drive demand and ensure the success of these ventures.
Land Availability and Mixed-Use Developments
According to Akshay Kulkarni, Director of Hospitality at Cushman & Wakefield, the scarcity of land for hotel development in New Delhi has made the Noida-Greater Noida Expressway a desirable alternative. "Availability of land in New Delhi to construct future hotels is low. As the most projects on the expressway come under mixed land use category, it has created an opportunity for hotel firms to bring their brands into the NCR region", Kulkarni explained. The prevalence of mixed-land-use projects along the expressway has further incentivized hotel companies to establish their presence in the National Capital Region (NCR).
Impact of Supreme Court Judgement
A recent Supreme Court judgment is also expected to spur hotel construction. Hotel companies allotted projects by the Uttar Pradesh (UP) government in 2007 are now likely to proceed with development. This includes projects by luxury brands such as the Canadian Four Seasons and InterContinental Hotel Group's brands, which encompass Crowne Plaza, Holiday Inn, and Holiday Inn Suites.
Five-Star and Luxury Hotels Anticipated
Ankita Mehta, Vice President of Hospitality & Commercial at Logix Group, anticipates that the availability of substantial land parcels on the Expressway will facilitate the development of numerous five-star and luxury hotels. "The availability of large tracks of land on the Expressway will lead to the development of five stars and luxury hotels in the area." Logix Group's hotels will be managed by Marriott Hotels.
Potential Impact on Room Rates and Occupancy
HVS India, a leading hotel consultancy firm, has observed the commencement of construction for approximately 30 hotels in Noida and Greater Noida. However, the firm also cautions that the rapid increase in hotel supply within a short period may exert downward pressure on average room rates and occupancy levels.