A range of hotels, spanning from economical options to luxurious accommodations, are emerging in and around Navi Mumbai. This growth is spurred by transformative infrastructure projects like the Mumbai Trans Harbour Link (MTHL) and the upcoming international airport.
According to hotel industry executives and transaction advisory firms, there is a notable increase in investments within the hospitality market, particularly in the regions of Navi Mumbai, Panvel, and Khopoli, which are now identified as key locations for investors.
Many prominent hospitality brands are either aiming to expand their existing presence or are making their entry into the region.
Radisson Hotel Group, the American hotel operator with its current property, Country Inn & Suites by Radisson in Turbhe, Navi Mumbai, has recently finalized plans for a 100-room hotel in Khopoli and has another of comparable size in the pipeline.
The MHTL, inaugurated for public use on Saturday, aims to alleviate congestion in Mumbai by enhancing connectivity between the island city and the mainland while fostering the growth of the Navi Mumbai region.
Stretching across approximately 21.8 km, this substantial infrastructure connection is anticipated to streamline traffic flow from Mumbai to Navi Mumbai, Navi Mumbai International Airport, Jawaharlal Nehru Port, Panvel, and extend all the way to Pune and Goa.
Ulwe and Panvel will be the key beneficiaries of the MTHL project in Navi Mumbai.
“Navi Mumbai is poised to become the next frontier in real estate development, witnessing a surge in strategic investments and infrastructural advancements,” said KB Kachru, chairman emeritus and principal advisor, South Asia at the Radisson Hotel Group.
The hotel group holds a first-mover advantage in the area, having already established a hotel and recently securing a deal for the 100-room Radisson Hotel.
“This development underscores our commitment to delivering exceptional hospitality experiences in one of the region’s dynamic and emerging markets,” said Kachru.
Noesis Capital Advisors, a firm specializing in hotel consulting and investment advisory, facilitated the transaction for the new hotel property. Additionally, the company is currently engaged in active discussions for two additional hotel deals in the same region.
“As connectivity improves, the hospitality potential in the region is projected to increase by five times over the next five years,” Noesis founder and chief executive Nandivardhan Jain said.
Suhail Kannampilly, the CEO of Concept Hospitality, the entity operating Fern Hotels & Resorts, envisions significant opportunities unfolding along the entire Mumbai coastal line with the MHTL.
“With better connectivity, destinations like Alibaug, Ganpatipule and Khopoli are set to gain further traction. We have signed for a 100-room property in Alibaug and are expanding our existing ones in the other two,” he said.
Diverse Brands Eyeing Navi Mumbai’s Growth
Concept, currently managing an 80-room establishment in Turbhe, is in talks for a 100-room property located near the DY Patil Stadium in Nerul, Navi Mumbai.
Noesis estimates that the present Navi Mumbai market comprises 1,486 operational branded hotel rooms, and there are plans for an additional 900 rooms in the pipeline for future supply.
Jain from Noesis mentioned that brands such as Marriott, Hyatt Regency, and Radisson are currently in different stages of development in Navi Mumbai, poised to become operational within the next four years.
Others are also seeking to enhance their presence.
JB Singh, the President of InterGlobe Hotels, which owns and manages the Ibis and Ibis Styles hotel brands, mentioned that the company has been closely monitoring the infrastructure development in the region and is eager to establish a presence there.
Mumbai is a key focus city for us as we already have four operational hotels and one under construction near BKC (Bandra Kurla Complex). We will commit only if it checks all the boxes with respect to price, location, demand drivers, etc.,” said Singh.
“The new airport will certainly act as a catalyst to drive ADR (average daily rates) in the region and if we undertake to develop something closer to the airport; it has to be at least a 200-room property,” he added.
According to him, InterGlobe presently operates a 196-room Ibis Hotel in Turbhe, Navi Mumbai, strategically positioned to meet the demand arising from the new airport.
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