In a bid to tap the growing service apartments market in the country, real-estate developer Suncity Projects, a part of the Zee Group, has tied up with the world's second largest player (outside the US) in the service apartments sector,
the Singapore-based Frasers Hospitality.
Suncity would bring in the Frasers brand by building service apartments in Gurgaon, Bangalore, Hyderabad, Mysore and Chandigarh.
Ajay Aggarwal, director, Suncity Projects, said: "In the next three to four years, we will build around 4-5 service apartment blocks in various cities across the country. Initially, we are looking at entering the IT cities, which is where the demand for service apartments is the most. The one at Gurgaon would include 125 studios and apartments."
Presently worth approximately Rs 1,500 crore, the service apartments sector is projected to grow to a whopping Rs 70,000 crore. There are only 10-15 organised service apartment blocks in the country and there is an estimated shortage of 11,000 units per city. With the sector growing at 200 per cent annually, the future is anybody's guess.
The growth of the sector has already prompted many international brands like the Singapore-based Ascott Group, the largest international serviced residence operator outside the US, to establish its presence in India by opening up service apartments in Bangalore and Chennai. US-based Oakwood too has opened service apartments in Bangalore, Mumbai and Pune, with plans to start operations in Gurgaon, Chennai and Hyderabad. American hotel major Marriott International is also setting up its second service apartment in Gurgaon by 2009 after establishing a presence in Mumbai.
Frasers Hospitality is an international branded serviced residence management company present in key gateway cities of the world, including Singapore, Bangkok, Manila, Seoul and Shenzhen, Sydney, Glasgow, London and Paris. It is the hospitality arm of Fraser & Neave Limited. The company has three branded lifestyle offerings in the service apartments sector – Fraser Suites, Fraser Place and Fraser Residence.