Delhi Developers Can Now Build Residential Units in Hotel Premises:The Economic Times

Hyatt, The Leela, among others, could benefit from the DDA proposal

The urban development ministry on Wednesday approved a proposal to allow building of residences in hotels in Delhi as a part of its review of Master Plan of Delhi-2021, a move that could provide succour to hotel developers in the city. The Delhi Development Authority (DDA) made the proposal after detailed deliberations which were followed by inviting suggestions and objections from the industry.

The proposal pertains only to hotels outside the restricted Lutyens' Bungalow Zone and those which fall under DDA ar ea. Hotels such as the Hyatt Regency, The Leela Palace, The Lodhi, Qutab Hotel and The Grand, are those that are potential beneficiaries.

Following the change approved in the Development Controls for Commercial Centres pertaining to hotels, developers will be allowed to use up to 40% of the floor area ratio (FAR) for commercial offices, retail and service shops and residential purposes. residential purposes.

Residential units, however, can be built only on 20% of this FAR or 8% of the total. On a 10,000 sq metre plot, for instance, hotels can now use 4,000 sq metre for commercial and residential purposes, of which 20% or 800 sq metre can be used for residential purposes.

The ministry said the transfer of ownership of such residential units built in hotels would be permissible only if the hotel land is freehold. “If the land is leasehold, transfer of ownership would be allowed only after DDA frames rules for this purpose,“ it said.

Earlier, hotels were allowed to use only 20% of the FAR for commercial purposes.

This has now been increased to 40% with the inclusion of residential use, but the additional FAR will be al lowed subject to payment of charges that will be pre scribed by DDA soon.

“Even if some hotels with a big suite inventory do not want to build new residences, they can con residences, they can con vert some of the large suites into apartments and sell them,“ said the managing partner at Prog nosis Global Consulting, Siddharth Thaker.