Delhi: DDA’s new land model takes off with ₹10,000-cr luxury hotel deal

Fleur Hotels Pvt. Ltd., a subsidiary of Lemon Tree Hotels Limited, has bagged the inaugural project in Nehru Place, officials said

Delhi’s Nehru Place, one of the Capital’s busiest commercial hubs, will soon host a new five-star luxury hotel — the first big-ticket project to take off under the Delhi Development Authority’s revamped land disposal model. The milestone marks a shift in how the land-owning agency manages its prime assets and is expected to generate steady revenues for decades.

The allotment is expected to fetch DDA around ₹10,000 crore over the next 55 years.

Officials said Fleur Hotels Pvt. Ltd., a subsidiary of Lemon Tree Hotels Limited, has bagged the inaugural project under DDA’s special licence property initiative. The allotment is expected to fetch DDA around ₹10,000 crore over the next 55 years.

In its maiden request for proposal (RFP) floated on May 2 this year, DDA had offered a two-acre parcel in Nehru Place for the development of a luxury hotel. The auction, conducted on August 13, saw Fleur Hotels win with a bid of ₹27.19 crore per annum — nearly 50% higher than the reserve price of ₹18 crore. The fee will rise annually through the licence period, ensuring DDA a steady stream of revenue.

“This model moves away from DDA’s old reliance on freehold or perpetual lease allocations, which were often unviable due to high land costs,” said a senior official. “The focus now is on long-term annual licensing, which ensures marquee projects while keeping DDA the ultimate landowner.”

The model, the official added, will also be extended to hospitality, warehousing, health, and retail projects.

The Nehru Place hotel will be operated under Lemon Tree’s luxury brand Aurika. Officials said it will be among Delhi’s largest hotels, with over 500 rooms and suites, signature dining outlets, expansive banqueting facilities, and leisure amenities. The project will be modelled on Aurika, Mumbai SkyCity, blending “grandeur with a distinctive Delhi flair.”

For Lemon Tree Hotels, which caters to over 1.5 million guests annually across 110+ hotels in 75 cities, the Nehru Place project strengthens its presence in the Capital. “Delhi has always been a strategic focus for us. Aurika’s entry will deliver a luxury experience that’s about living, not just staying – a landmark in style, comfort, and service for the region,” said Patanjali Keswani, chairman and managing director of Lemon Tree Hotels.

The bidding process was managed by SBI Capital Markets Ltd., which acted as transaction advisor. Officials said the project not only bolsters DDA’s revenue profile but also signals Delhi’s growing appeal as a global hospitality and business hub.

Beyond Nehru Place, DDA has lined up commercial projects on six large land parcels across the city that have remained unused or encroached for years. These include a Gold Souk in Dwarka Sector 22, office spaces in two Rohini sectors, hotels in Nehru Place and Dwarka Sector 23, and a hospital in Dwarka Sector 9. While the Nehru Place site is the smallest of these parcels at 0.9 hectares, the largest is a 9.3-hectare plot in Rohini earmarked for an office complex.