A top company source said the plan to set up a chain of hotels was under consideration. Aban is talking to different chains for a possible partnership. Aban owns large tracts of land in Chennai and Kerala and the hotel project is a brainchild of the management to develop the land it owns, said the source.

But the project's culmination would depend on market dynamics, he said. Recently, many hotel majors including the Spic-Radisson joint venture and Leela Ventures have announced their intention of setting up hotels in the city.

Other major hotel projects like the Hilton and Oberoi are nearing completion. All this could lead to an oversupply of rooms and a low occupancy rate, which would affect the project's economics. Hence the company is commissioning a market study todetermine the viability of a hotel project in Chennai at this stage.

The study will be conducted by an external management consultancy and Aban has shortlisted a few for the purpose. The consultancy would also take up a similar study for hotels in Kerala, it is learnt. The company is also evaluating alternatives like setting up a software park or property development on the land sites, If the study finds the project unviable, the source said.