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Residency Towers nearing completion

By Our Special Correspondent

CHENNAI NOV. 29. One more star hotel is sprouting up in Chennai. A four-star 176-room hotel — The Residency Towers — is fast coming up on the busy Pondy Bazar. Promoted by SAS Hotels Enterprises Ltd., an equal joint venture between the Delhi-based Sood & Sood Builders Pvt. Ltd. and the Chennai-based real estate-cum-hospitality group Appaswamy, the hotel is set for a soft launch in the first quarter of next year.

According to Ravi Appasamy, the Managing Director of the Appaswamy Group, the upcoming hotel project will have an investment outlay of around Rs.50 crores.

The project will have a debt-equity ratio of 1:1. While the equity component — equally contributed by both the groups — has already come in, the debt portion is raised through a loan from Andhra Bank at PLR (prime lending rate)-linked interest.

Mr.Appasamy expected the project to go on full stream six months from the date of soft launch.

The hotel project is coming up on a 26-ground, acquired by Sood & Sood from the Russian consulate sometime ago. Initially Sood & Sood had sounded the Appaswamy Group on joint development of commercial complexes. They had, however, subsequently chosen to build a four-star hotel instead. Mr. Appasamy said though the hotel was jointly promoted by the two groups, its management and maintenance would rest with SAS Hotels Enterprieses Ltd., the hospitality arm of the Appaswamy Group.

The Residency Towers would have state-of-the-art facilities, thematic food and beverage outlets, terrace restaurant, convention centre et al.

According to him, only 30 per cent of the 26-ground land had been taken up for building the civil structure. The balance was being used to provide car parks, landscaping and the like.

This is the first time that the Appaswamy Group is joining hands with someone to promote a hotel.

It has two Residency hotels under its control. The 115-room Residency Hotel in Chennai and the 125-room Residency Towers at Coimbatore were promoted and launched by the group in 1991 and 1997, respectively. It is also managing the 44-room Richmond Hotel in Bangalore.

K.C.Tharyan, Executive Director of the Residency group of hotels (the hospitality wing of the Appaswamy group), was convinced that pricing and service could be key factors for the profitable running of the upcoming Residency Towers.

Only a few months ago, Chennai had seen the launch of a star hotel — Park — by the Apeejay Group.

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