The Rajasthan State Industrial Development & Investment Corporation (RIICO) is inviting expression of interests (EoI) from leading hotel groups for setting up of four budget hotels over 22 acre of land in Neemrana, near Delhi.

The four budget hotels, with a combined capacity of over 250 rooms, will be built at an estimated investment of Rs 55-70 crore. According to hospitality industry sources, some of the big names in the hotels business are likely to submit their EoIs for the project.

According to the government of Rajasthan, the state receives six lakh of the 23 lakh foreign tourists who visit India annually. Traditionally, over 50 lakh domestic tourists also visit Rajasthan every year. “With such tourist inflow, budget hotels will turn out to be money spinners for the government,” sources said.

“Budget hotels are the new wave for encouraging upmarket Indian tourists to visit Rajasthan. Both RIICO and the government of Rajasthan are looking to encourage greater investments from the private sector towards establishing quality budget hotels in the state,” the sources said.

Apart from budget hotels, RIICO has set aside Rs 200 crore for the development of Neemrarna industrial area, which is next to the Neemrana Heritage Fort, a famous hotel retreat for foreign tourists visiting Delhi. “This is the second such expansion project being undertaken by RIICO. The last one had a budget allocation of Rs 350-400 crore,” hotel sources told FE.

Commenting on the expansion plans, Kuldeep Ranka, MD, RIICO said: “The entire cost of the project is being borne by RIICO. Apart from NIIT, which is setting up a deemed university in the area, more corporates are in talks for establishing educational institutes and other offices in the area.” While the entire project is likely to take two years for completion, the four budget hotels would start operations earlier, sources added.

( www.financialexpress.com)