Now appears the turn of iconic hotel properties. A few months ago we had reported the Le Royal Meridien Hotel built by NRI Dr P G Periasamy, purchased by MGM Hospitals and slated to be converted into a hospital. The latest news relates to the demise of the Crowne Plaza hotel at Adyar Gate. Property developers Ceebros are reported to acquire this property for conversion into a multi-storeyed residential complex.
You have heard Darwin’s theory of the remarkable evolution of the live species. You’ll notice such evolution of buildings, cities… of inanimate objects as well. This change is continuous and is often related to economics.
When the entertainment industry was evolving, we witnessed cinema theatres becoming ubiquitous. For a while, such prolifiration also seen in kalyana mandapams, retail fuel outlets… With real estate prices spiralling, these took new avatars, as multi-storeyed buildings. This is logical with land prices shooting up, demand for residences and commercial properties increasing vertical growth generates more value.
With rapid urbanisation and with the density of population increasing in metros and cities, prices of residential flats have been skyrocketing. In a matter of just two decades, the price of a decent apartment in Ashok Nagar/K K Nagar, part of Chennai, has shot up from around Rs 800/sq.ft to close to Rs 14,000/sq.ft.
Now appears the turn of iconic hotel properties. A few months ago we had written about the Le Royal Meridien Hotel developed by NRI Dr P G Periasamy purchased by MGM Hospitals and slated to be converted into a hospital. The latest news relates to the Crowne Plaza hotel property at Adyar Gate. Property developers Ceebros are reported to acquire this property for conversion into a multi-storeyed residential complex.
TT VASU’S DREAM PROJECT…
Nearly five decades ago, son of former finance minister T T Krishnamachari, TT Vasu, conceived of a star hotel at Adyar Gate at the junction of Chamiers Road and Mowbrays Road. Historically the area was known for the dwellings of the British aristocracy. Vasu conceived a big potential for tourism and demand for star hotels which were then few and far between. At that point of time Taj Coromandel and later Connemara Hotel were managed by the Tatas; ITC inaugurated its first hotel business, Hotel Chola in 1975. With businesses expanding, there were expectations of demand for more star hotels. Vasu, with his global contacts and with the TTK Group engaged in a variety of branded consumer products, foresaw big custom. Unfortunately, the other leaders at the TTK group were not impressed. Vasu struggled to mobilise the modest cost of Rs 3 crore at that point of time and handed the property to the Goyals.
ADYAR GATE BECAME PARK SHERATON
ITC, keen to expand into hotels, joined hands with Adyar Gate Hotel Ltd (AGHL). Soon it invited the Sheraton Group and expanded it as Park Sheraton Hotel and Towers into a 286-room property. For over three decades, Park Sheraton flourished as the leading star hotel in the city enjoying great custom. ITC’s drive and leadership enabled the hotel to grow. The large spacious property attracted guests including cricket teams, diplomats and businessmen from India and abroad.
Later when ITC quit the Adyar Gate property, AGHL entrusted the Intercontinental Hotels Group (IHG) to run it. IHG managed the property under its international brand Crowne Plaza. It already runs other brands Holiday Inn and Holiday Inn Express Grand hotels in the city and around. But this was the first Crowne Plaza brand.
The Covid pandemic with the lockdowns and severe restrictions on travel massively impacted connected businesses; it hit the hotel industry the most. As happened earlier in the case of Atlantic Hotel in Egmore, Viceroy Hotel in MRC Nagar and more recently Le Royal Meridien in Guindy, the Crowne Plaza is also slated for conversion. Property value in the Boat Club area, among the most expensive in the metro, would fetch massive returns when converted into a posh multi-storeyed residential complex.
When the plans of Tamil Nadu zooming to a trillion-dollar economy, Chennai metro will demand high-grade hotel rooms in plenty. You will witness demand for property turning a full circle
