Mumbai-based DB Realty has decided not to take up any new hospitality project and shelve earlier plans. Properties that have already been developed and are running will be retained by the company, while those in the pipeline will either undergo change of use or get divested, say media reports. Vipul Bansal, CEO, DB Realty, said that hospitality is not the focus area and there is no plan really to expand the hospitality asset portfolio anymore.
Projects, where work has not started will either get converted into residential developments or we will get rid of them. The focus will purely be on the realty business, he added. Without divulging details, Bansal said a development in Pune will get converted to residential project while the company will sell up to 49 per cent in the land parcel (7.7 acre site) at Delhi International Airport’s (DIAL) new hospitality district.
The plot at DIAL is under DB Hospitality, a group company in which DB Realty hold 49 per cent stake. Earlier plans were to house four hotels and a large convention centre. However, plans were restructured later to develop 1.3 million square feet of the plot featuring a hotel, a convention centre, serviced apartments along with 3,00,000 sq ft of high-end retail space.