Grand Hyatt Mumbai Pegs Room Rate At $120

Mumbai, March 25 | Updated: Mar 26 2004, 05:30am hrs
Hyatt Internationals property in Mumbai, Grand Hyatt Mumbai has pegged its room rate at $120. The hotel spread over 10 acre at Vakola in Santa Cruz, is a joint venture between Saraf Industries and Associate of Hyatt. The Rs 650-crore project, which was delayed by a year-and-a-half, has resulted in a cost overrun of Rs 55 crore, including Rs 35 crore on the interest and Rs 20 crore towards manpower, said Grand Hyatt owner and developer Arun Saraf. However, there has not been any hike in construction cost, said Mr Saraf. Of the investment, the equity is Rs 260 crore, while Rs 60 crore has been raised locally.

Justifying the location of the hotel, Mr Saraf said that the hotel management would work along with the Brihanmumbai Municipal Corporation (BMC) for developing the surrounding area. He added that once the Vakola-Chembur Link Road is constructed, the approach to the hotel would improve.

The other reason for setting up the hotel in north Mumbai is the demand for hotel rooms, said Mr Saraf. According to him, the hotels in north Mumbai enjoy a 25 per cent higher occupancy that those in south Mumbai. He said: North Mumbai is growing much faster and with tourism happening, there is enough scope for absorbing the stock of rooms available. Grand Hyatt Mumbai general manager Josef Kufer said that the unique selling proposition for the customers, in spite of the inconvenient location, would be elaborate food and residential apartments.