Hotel & Service Apartments

near Mahindra world city

Investment for 50% stake: 5 cr.

Expected total returns: 72 cr. + recurring hotel
income
 Mission
 To provide world class & cost effective
hospitality services to business and
leisure tourists of the area
 Project
 Proposed developments in the project
 Star category hotel
 1500 service apartments
 Land
 Land: 15 bigha = 45375 sq. yds. (agriculture
status)
 Permissions & approval: Rajasthan tourism policy
2007
 No CLU charges for tourism project (saving of 400
Rs./sq. yd.)
 No development charges (saving of 200 Rs./sq. yd.)
 Location: Mahalan – 22nd milestone from Jaipur on
main 6 laned Jaipur-Ajmer expressway (NH8)
 On right hand while going from Jaipur to Ajmer
 6 kms from Mahindra world city
 Activities in vicinity
 3 IT Parks/ SEZs (M & M/Vatika/Mega City)
 Auto/Apparel/Handicrafts/Jewellery SEZ
 Medical tourism – Health city & super specialty
hospitals
 Universities (Jyoti & Manipal) & education city
 Meetings/Incentives/Conventions/Exhibitions
(MICE) Tourism – JDA’s convention center
 Multi purpose conference hall of minimum
2000 people capacity
 Hi-tech convention hall for 750 people capacity
 Demand
 Shortage of hotel rooms in Jaipur
 Commonwealth games in delhi (Oct.
2010)
 Jaipur & Goa are 2 most upcoming
medical tourism destinations in India
 Room rents vary from Rs. 2000 –
7000/- per night. A service apartment
is more economical.
 Demand for service
apartments
 IT companies have offshore & inter office
teams visiting regularly. Duration may
vary from few weeks to few months.
 During the next 5 years over 2 lakh people
will join new jobs and will need temporary
accommodation for 4-8 weeks
 Massive construction is going on in the
area and people will need temporary
accommodation
 Several tourists (especially with family)
have special requirements of food and like
to cook themselves
Clients’ preference for service
apartments
MICE Tourism
Medical tourism
(Meetings/Incentives/
(High)
Conventions/Exhibitions)
(Moderate)

•IT/BPO companies – (High)

•Manufacturing SEZ companies – (High)
 Ground reality
Hospitals –
International Convention Center – • Kailash hospital to begin
JDA to announce developers name construction next year
•Health city coming up in mega city

IT/BPO companies
• 8 companies already bought land in M&M SEZ
•Vaitka’s IT SEZ under construction
•Fire Capital’s IT Park to be announced soon. Layout developed.

Manufacturing SEZ companies

•15 companies already bought land
 Leisure tourism
•Ethnic theme park & entertainment
Jaipur is a popular wedding destination
City in vicinity
•Great weekend getaway for Delhites

•High traffic of Gujrati tourists preferring low cost & homely accommodation
•Pushkar & Ajmer are popular tourist destinations
•NH8 is the busiest highway in country connecting Mumbai-Delhi
 Service apartments – User
perspective
 An apartment with all the 5 star
amenities
 Less than 1/2 the tariff of a hotel
room
 Regular shuttle service to SEZ
 24/7 attendant
 Modular kitchen with all cooking
facilities
 Amenities in room
 Modular kitchenette
 21” plasma with DTH connection
 Elegant bathroom fittings
 Elegant electrical fittings
 Refrigerator
 Air-conditioner
 Double bed with comfortable bedding
 Stylish sofas and couches
 Furnished wardrobe
 Microwave and electric kettle
 Quality cutlery and crockery
 Electronic card lock system
 Elegant curtains and furnishings
 Rugs and cushions
 Service apartments – Investor
perspective
Option of leasing back to company:
 A professional hospitality group managing
the service apartments
 21 days of free stay each year
 50% of rent receipts
 Appreciation of apartment as demand
rises
 Other offers in health club and hotel
 No maintenance charges
 24 month easy payment plan
 Who will be the clients?
People Resort Corporate
working in tourist from events/meetin
SEZ delhi g tourists
Medical Weddings & Highway
tourism Parties tourists

Jaipurites for Service Tourists

restaurants & apartment visiting Jaipur
hotel owners
 Hotel
 Tie up with a renowned hospitality
chain
 Shopping arcade
 Health club with all modern
amenities
 Huge hall & lawn for marriages &
conventions
 Hotel to be constructed from sales
receipts of service apartments
 Service apartments
 3 type service apartments

Type 600 Num. 450 Num. 450 Num.

Size 400 sq. ft. 500 sq. ft. 600 sq. ft.

Price 1300000 1600000 1900000

Regular 50% of rent 50% of rent 50% of rent

returns receipts receipts receipts
 Road map

Extension

Hotel
construction

Construction of
Service
Apartments

Project
Marketing &
Sales

Permissions
&
Layout & Approvals
Development
plan
 Project timeline
 Layout plan + approvals + pre-sales
planning – 4th month
 Sales phase – 4th to 10th month
 Construction begins – 4th – 6th month
 Construction ends – 24th - 26th month
 Economics – Service
apartments
 Land cost: 6 cr.
 Permissions: 3 cr.
 Layout planning & pre-sales branding/marketing: 1 cr.
 Total investment = 10 cr.
 Sales: 225 cr.
 Net profit before tax: 72 cr. from apartments alone
 Extra cash (if required) to be raised by debt/equity against
commercially converted 45375 sq. yd. land

Service apartments to be constructed with sales receipts received in installments

 Regular Income
 Hotel income
 Income from leased back service
apartments
 Conference halls
 Joint venture terms
 50-50% stake in the development company
 Our equity initially: 6 cr. land in development
company
 Partner’s contribution: 5 cr.
 1 cr. to us

 4 cr. in development company

6 cr. land 1 cr. to us + 50-50% equity

(100% our in development
Equity) 4 cr. in development company
company
 Thanks

Contact:
info@jakon.in
Madhur Singhal@9351393054
Ghanshyam Singhal@9314513675