IHCL to invest Rs 2,500 crore to develop new 330-room property in Mumbai

The Tata Group-run Indian Hotels Company on Monday announced a Rs 2,500 crore investment to develop a new 330-room property in Mumbai.

Construction of the new property, "Taj Bandstand," is set to begin this year and is expected to take over three years to complete, IHCL's Managing Director and Chief Executive Puneet Chhatwal said.

The facility will create direct employment for 1,000 people, while the indirect ones like cab drivers etc will take the overall employment to over 7,000.

The new property is coming up on a two-acre land parcel that once housed the Sea Rock Hotel, which was one of the sites bombed in 1993 serial blasts. IHCL bought the property for Rs 680 crore and demolished the structure completely.

Chhatwal said the investment includes the cost of land and added that all necessary permissions for the development have been obtained, except for a few minor ones.

A groundbreaking ceremony for the new hotel was held on Monday in the presence of Maharashtra's Chief Minister Devendra Fadnavis and Tata Sons Chairman N Chandrasekaran.

IHCL already has a property - Taj Lands End - right next to the upcoming hotel. A road passes between the two plots to the historically significant Bandra Fort.

The financial capital already has four properties of the company, including the iconic Taj Mahal Palace off the Gateway of India, which was the Tata Group's maiden hospitality venture.