You can now add a hotel room to your shopping list. Malls across Mumbai are planning to build hotels on their properties, with High Street Phoenix in Lower Parel being the first off the block. It is in the final stages of discussion for a tie-up with international hotel chains like the Shangri-La and Taj.
High Street Phoenix, located on the now-defunct century-old Phoenix Mills, was the first mall to come up on mill land. Its commercial development began in 1998.
Shishir Srivastava, head of High Street Phoenix’s hotel division, said the hotel would be built atop the mall’s multi-level parking lot. “We are yet to decide whether it will be a five-star or a three-star hotel,” he added.
Hotels attached to malls are common abroad and among the other city malls latching onto the trend is R-City Centre on LBS Marg in Ghatkopar (W), which is being developed in a joint venture between the Runwal Group and Singapore’s CapitaLand Group. The 20-acre mixed-use development will have a mall and cineplex across 13 lakh sq ft, while the hotel will occupy seven floors above it. “We hope to attract tourists and will provide services accordingly. We will either have a four- or five-star hotel and will disclose our partner soon,” said Sandeep Runwal, director, Runwal Group.
Property consultants pointed out that the higher floor space index (FSI) allowed for hotels — 2.5, compared to the 1.8 allowed for malls — could be why developers are keen on hotels. “The idea is to utilise the extra FSI for revenue,” said Amitabh Devendra, head (hospitality), Trammel Crow Meghraj.
Not just Mumbai, Chennai, Lucknow, Indore and even Ghaziabad are following the trend. The recent Knight Frank report, India Hotel Review, states that high land costs and risk mitigation are fuelling the trend.
What remains to be seen is how these hotels would work in already overcrowded spaces like High Street Phoenix. Said Devendra: “Congestion could be a problem but developers would have to work out an appropriate design. The clientele is business travellers and there is no reason why the trend shouldn’t work.”