Top Hoteliers Put 'Star' Plans on Hold

Published: 15th May 2015 06:01 AM  |   Last Updated: 15th May 2015 06:01 AM   |  A+A-

VIJAYAWADA: Several top players in the hospitality industry are ready to invest in the capital region of Andhra Pradesh, but ambiguity over the plans for the new capital city and delay over the shifting of the government offices from Hyderabad have put them in a big dilemma.

Novotel, Sheraton and Green Park are some of the big players that have already planned to construct five-star hotels in Vijayawada, part of the new capital city of Andhra Pradesh. In fact, Novotel has already begun the ground work on the land it has acquired near Loyola College, while the Lingamaneni Group of Industries has tied up with Sheraton for another five star hotel and the Green Park Hotels have entered into a tie- up with another prominent business group in the city.

Almost everyone, who was eager to invest in the hospitality industry when the capital city in Vijayawada region was announced nearly a year back, has now adopted a wait- and-watch policy as  no clear picture has yet emerged as to where the hospitality industry will fit in the designs for the capital city.Even the announcement that Chief Minsiter Chadnrababu Naidu will administer the state for three days a week from Vijayawada has not evoked much enthusiasm among these top hoteleires. Erring on the side of caution, they are biding their time for the plans on paper to translate into reality and the potential business opportunities to emerge clearly. “The hotel industry needs a steady flow of customers to keep the business going. Such a  steady flow will be there only when the tourist centres in the region are developed. The government head offices getting shifted to the region from Hyderabad will also help, as there will be flow of people coming for official purposes,” Ilapuram Raja, president of Vijayawada Hotel Owners’ Association (VHOA), said.

Though there has been talk for some time that several government offices will be shifting to Vijayawada before their permanent shift to the new capital city, nothing has materialised yet. “Once there is a steady flow of people after government offices shift here, new hotels will come up. Already plans are afoot for the new ones. However, for now, the existing hotels are sufficient to cater to the current customer inflow”, he said.

There are around 110 hotels in the City, including about a dozen three and four-star hotels, which are members of VHOA, and another 60 hotels and lodges are also there in the city.


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