APTDC Haritha hotel finds its brand operator in Tatas

Tirupati: It seems happy days are here for the AP Tourism Development Corporation’s (APTDC) Haritha hotel in Tirupati as it has crossed various obstacles and finally found a brand operator for undertaking and implementing the project.

Recently, APTDC has issued a notification calling for bids from brand operators and primarily selected the Indian Hotels Company Limited (IHCL), Mumbai, the South Asia’s largest hospitality enterprise owned by the Tata group and running hotels with various brands like Taj, Vivanta, Ginger, etc.

The IHCL has complied with the terms and conditions and sent an acceptance letter and fulfilled the preliminary norms paving the way for APTDC to take further steps in this regard.

It may be recalled that APTDC has planned to build a star hotel at a prime location near Alipiri and opposite to Ruia Hospital for which the works began in 2013. It was planned to build 110 rooms, including dormitories, conference hall, APTDC divisional office and a restaurant to seat 200 people. After APTDC has spent Rs 11 crore and preliminary civil works were completed, the project was stopped with a view to lease out the hotel to private parties, which received poor response.

The bidders tried to capture the hotel for a meagre Rs 3 crore and those efforts were turned down by APTDC. After several such attempts which went in vein, it finally decided to run the hotel on its own. To proceed further in completing the hotel, APTDC needs to spend at least another Rs 10 crore and expecting to yield an annual income of not less than Rs 5 crore from it.

To give a brand to its hotel, APTDC called for bids to become the brand operator and to be associated with maintenance of the proposed hotel and selected the IHCL for the purpose. IHCL has responded positively within the stipulated time of 15 days and accepted the conditions.

When contacted, APTDC Divisional Manager RV Suresh Kumar Reddy told The Hans India that this operation and maintenance contract will be given for a period of 20 years. He, however, made it clear that all decisions will be taken by APTDC headquarters at Vijayawada.

Once the formal signing of the agreement is taken place, the officials of the IHCL will reach Tirupati to undertake the works. It was learnt that the IHCL will be the brand ambassador only and the rights of the hotel will be vested with APTDC. The IHCL will be paid some percentage on the gross revenue.

Needless to say, APTDC has also been contemplating with an idea of building another star hotel at Horsley Hills for which the expression of interest was already called for from reputed hotel brands.

Already, Tirupati division has been fetching huge revenues for APTDC, by way of the transport services through which it has been operating package tours to Tirumala from various destinations and Horsley Hills. It has been earning about Rs 35 crore per annum from this division and once the two-star hotels at Tirupati and Horsley Hills are opened, the income may reach Rs 50 crore mark.