Videocon Group has put its hotel project on backburner. The company now plans to enter the Ahmedabad real estate market with a residential cum commercial project on the prime location of Ashram Road. The company has already submitted plans to the Ahmedabad Municipal Corporation (AMC) for approval.
Videocon sources said the there will be 60 residential units and 40 offices on the plot size of 4,500 sq m. The company will set up a ground plus 11 storeyed building on the location.
Videocon was planning to launch a five-star hotel and commercial shopping centre project near Nav Gujarat College on Ashram Road. The company had purchased the land where a residential colony called Lotus Society once stood. It had struck the land deal for around Rs.30 crore in mid-2008.
The company had also submitted plans for approval to the town planning department of AMC, said AMC sources. If market sources are to be believed, the company was in talks with several international hotel chains for management of the hotel. But, the company changed its plans. “Plans have been submitted for a residential cum commercial project and are awaiting approval,” said sources.
Officials of Videocon Group refused to comment. However, experts in the market say that the hospitality industry is passing through a tough phase while the residential segment is not much affected. This may be one of the reasons for the change of plans.
