The Noida Authority will be inviting technical bids for 12 hotel plots estimated to cost a whopping Rs 1,400-1,500 crore. According to sources close to the development, major developers including DLF and Parsvnath have evinced interest in bidding for these plots. The technical bids, to be invited on April 24, will be followed by financial bids in a week. In all there are five plots for five-star category, two for the four-star category and five more for three-star category.

Noida Authorities have fixed a reserve price of Rs 77,000 per sq metre. “So for a five star category, the bidding will start at a price more than Rs 185 crore,” says Deepak Mowar, VP-Hotels, Parsvnath Developers. As per the norms the plot area of a five star hotel should be 24,500 sq metre. It is 15,000 sq metre and 7,500 sq metre for a four-star hotel and a three-star category, respectively.

Commenting on the overbidding he added, “It is difficult to comment on the limit of overbidding but the realisation of revenue, location of the plot and the profit from the commercial portion will also factor in.” As per Noida Authority norms, 40 per cent area needs to be allotted for commercial development.

On completion of these projects it would provide more than 3,000 rooms in different categories. On being queried about the feasibility of a five star hotel in Noida, Mowar added, “There is less feasibility of a five star hotel in Noida, as the city is still developing. Also, it doesn’t have a catchment area like Gurgaon or Delhi. The Zewar Airport is yet to come and businesses are still growing in the region. Though it will take time, Noida will surely benefit by such a development.”