Pride Hotels Leaders Seek Higher FSI and Single-Window Clearances
Hotel developers need higher Floor Space Index (FSI) and streamlined administrative approvals to make hospitality projects economically viable across Mumbai and surrounding micro-markets such as Thane, according to Pride Hotels Ltd leadership.
Speaking in an interaction with FPJ Principal Correspondent Sweety Bhagwat, Pride Hotels Ltd Chairman SP Jain and Managing Director and Chief Executive Officer Satyen Jain stated that developers are avoiding hotel construction because residential and retail projects yield significantly higher returns. They stressed that hotels remain essential for business travel, tourism, large events, and meetings, incentives, conferences, and exhibitions (MICE).
The hoteliers highlighted that higher FSI is necessary to make hotel projects feasible on smaller urban plots. Drawing a comparison with Thailand, they explained that permitting increased construction density helps keep room tariffs reasonable, whereas Mumbai needs similar regulatory adjustments to support hotel viability.
Mumbai functions effectively as a cluster of eight to ten distinct micro-markets where accommodation demand is closely linked to specific work hubs. The executives pointed out that someone working in BKC is unlikely to stay in Thane, making an adequate supply of hotel rooms essential across each separate commercial micro-market.
Rising construction and operating expenses, alongside elevated airfares driven by fuel costs, have pushed up room rates across the country. According to the hotel executives, this has impacted price-sensitive international tourist arrivals, which have yet to cross pre-Covid levels, even as domestic tourism remains robust.
The leadership also highlighted the employment impact of the sector, noting that a single 200-room hotel generates approximately 1,000 direct and indirect jobs through service providers and suppliers of milk and vegetables. The overall economic impact of such a property can extend to around 4,000 to 5,000 people when factoring in dependent families.
To facilitate development, the executives called on the government to establish a single-window clearance mechanism to simplify the approval process, noting that hotels currently require more than 100 separate permissions. They also recommended that regulatory authorities grant smaller food establishments time to rectify minor shortcomings rather than issuing immediate closure notices.
