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| Realty players' hospitality projects hit by downturn: JLLM |
| Press Trust of India / New Delhi Sep 07, 2009, 21:21 IST |
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The global economic slowdown, coupled with lack of credit, has hit realty players' foray into the hospitality segment with the companies adding up only half of the originally planned inventory, a report has said.
According to the report by global real estate consultancy Jones Lang LaSalle Meghraj (JLLM), about a quarter of originally announced plans of real estate firms, including DLF and Parsvnath, have been scrapped.
"The total number of rooms estimated to be added today is nearly half of what was announced earlier. One-fourth of the announced plans have fallen completely flat and the rest are hanging on the edge of viability," the report -- Funding Real Estate Projects for the Hospitality Industry: Emerging Perspectives -- said.
It, however, did not provide details like the total number of room inventory or the time-period of the projects.
"All players have been reviewing their plans of development, owing to the increasingly challenging macro economic situation at the moment ... DLF, Parsvnath and other developers of similar cadre have scaled down or slowed down their plans of expansion," the report said.
Parsvnath, which had plans of adding at least 10,000 rooms, has now stopped acquiring land for any further plans other than the twenty hotels for which they have already done the same.
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