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Apeejay to earn 55pc revenue from luxury project with Ambuja Neotia in Kolkata

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Kolkata, Aug 11 (PTI) Apeejay Surrendra Park Hotels Ltd (ASPHL) will receive 55 per cent of revenues from its upcoming luxury hotel and serviced apartment project on EM Bypass in Kolkata, developed in partnership with Ambuja Neotia Group, the company said on Monday.

The 3.5-acre joint development will feature a 250-key five-star hotel to be operated by Apeejay and 100 high-end serviced apartments.

The project has received approvals for road, fire, forest, airport authority, water, sewage, drainage and KMDA clearances, while Kolkata Municipal Corporation building approval is expected by September, the company said in a presentation.

With major design consultants having been appointed, the project for both hotel and residential apartment will begin soon and is expected to be completed by April 2028, the hotel chain stated.

“(The) agreement will see ASPHL receive 55 per cent of the project revenues….. The total project is expected to generate over Rs 600 crore in revenues, with ASPHL’s share projected at Rs 100 crore annually over the next three years,” the hotel major told analysts.

ASPHL said the residential sales launch is expected around the Diwali season in 2025, marking the formal kickoff of the project.

“With no capital investment beyond our historic land bank, the project is poised to deliver strong gross margins and emerge as a landmark asset in our portfolio,” the company told analysts.

Hotel occupancy is projected at 75 per cent in FY29, rising to 90 per cent in FY31, with average room rates expected to grow from Rs 11,000 in FY29 to Rs 13,008 in FY31. The topline is projected at Rs 136 crore in FY29, Rs 159 crore in FY30 and Rs 192 crore in FY31.

Apeejay Surrendra Group had acquired the EM Bypass plot for Rs 135 crore in 2008, but the project was delayed for years due to a tax dispute. PTI BSM NN

This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.

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