Lavish service apartments
The Ascott Ireo City Gurgaon will offer 220-service apartment units in the configurations of studio, 1-BHK and 2-BHK, out of which 160 will be serviced residences.
We are positive about service apartment and mid-market hotel space in India in the long-term market
Head-Hospitality, Ireo We have six under development properties and two operational properties in India at the moment
MD, Strategic Development, The Ascott
big on the hospitality sector of the country, Pankaj Dugar, HeadHospitality, Ireo is confident about the mid-market hotel space in India. “Hospitality business is a cyclical one at the macro level, but there are so many micro-markets in India which are untapped. Whenever there is an increase in supply in the short term, occupancy will take a hit. But this gets rectified in the long term. An example of this would be the Mumbai hospitality market where from 2003-09, there was tremendous increase in supply. However, demand necessarily did not witness a drop and occupancy never dipped. Thus, the outlook needs to be for long-term. In short term, this industry will always see challenges. Overall, we are positive about service apartment and midmarket hotel space in India in the long term market,” Dugar said, while announcing the company’s hospitality tie up with Ascott for managing the proposed service apartments project in the upcoming 700-acre integrated Ireo City development project in Sector 59 in Gurgaon.
The Ascott Ireo City Gurgaon will offer 220-service apartment units in the configurations of studio, 1-BHK and 2 BHK, out of which 160 will be serviced residences, and the remain- ing 60 will be private residential apartments. The company had also signed a pact with Hyatt Hotels for Grand Hyatt Hotel and Residences for the Ireo City complex earlier this year. Ascott Ireo City Gurgaon will be the fourth hospitality investment by the real estate company. The other projects include the Grand Hyatt mix use project in Gurgaon, first branded club in Ludhiana in partnership with Angsana and a hotel and branded residences in North Goa with Banyan Tree Hotels.
Talking about the new development, Dugar informed, “Despite phenomenal commercial activity in and around Gurgaon, there is a dearth in terms of quality service apartments for longstay guests in the city. Currently, the market is underserved and we see a huge opportunity in that space. Thus, this will mark the entry of Ireo into luxury service apartment space. Ireo will be developing the project with technical assistance from Ascott, which will manage these apartments. These are expected to become operational by 2016 end or 2017 beginning.”
The world’s largest international serviced residence owner- operator, Singapore- based Ascott now has a total of eight properties in India. “We have six under development properties and two operational properties – Citadines Richmond Bangalore and Somerset Greenways Chennai in India at the moment,” Alfred Ong, MD, Strategic Development, The Ascott added.
Alfred Ong, MD, Strategic Development, Ascott (Left) and Pankaj Dugar, Hospitality Head, Ireo at the press conference