Adarsh Realty to build Shangri-La Hotel for Rs. 600 crore.

Adarsh Realty and Hotels, hospitality arm of Adarsh Group, will invest around Rs. 600 crore to build a Shangri-La branded luxury hotel in Bengaluru, a top company executive said.

'The 370-key property, located in the IT hub of Bengaluru's Outer Ring Road, is expected to be completed in the next two years,' Rajiv Seth, vice-president (hospitality) at Adarsh Realty and Hotels, told ET. The company will fund the project through acombination of debt and equity.

This will be the third Shangri-La hotel in the country and the second in Bengaluru. The first Shangri-La hotel opened in Delhi in 2005.

Adarsh Realty is already building a Shangri-La hotel, which is expected to open in May.

'Demand will definitely grow in the market even if the supply grows, as Bengaluru is not only an IT Hub but it is also becoming a manufacturing hub,' Farhat Jamal, Shangri-La's area manager for India, said when asked about the rationale behind setting up two Shangri-La branded hotels in a market like Bengaluru, which has seen considerable supply addition in the upscale category. 'Though the supply has almost doubled in the last four years, the market has done well.'

ET