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KAKINADA/RAJAHMUNDRY: Once they were literally in the backwaters of the state but suddenly these two cities — 50 km apart- have become hub of high-profile activity. Businessmen, executives, government officials all are coming to these two cities in droves. The result? No less than eight new hotels — six at Kakinada and two in Rajahmundry — are coming up with nearly 550 rooms. This is in addition to six hotels (three each in Kakinada and Rajahmundry) with nearly 350 rooms catering to tourists and business tycoons. Among them, three hotels in Kakinada offer three-star facilities.

But how did the boom in the hotel industry come about? Thanks to exploration of oil and gas in the Krishna-Godavari basin in the vicinity of Kakinada and increasing commercial activity and ONGC operations in Rajahmundry, several players have ventured to explore new avenues and turned them into hospitality hubs.

“With several industrial units coming up in and around Kakinada under KSEZ and the establishment of PCPIR between Vizag and Kakinada, our industry will grow in leaps and bounds,” observed Kadali Padmini, MD of Oak Tree Hotels and Investments Ltd. The optimism of hoteliers in Rajahmundry is no different. “Rajahmundry is a big commercial centre with heavy passenger/tourist traffic throughout the year. With a functional airport in place, the hospitality industry is more viable in Rajahmundry,” opined Chowdary S Garikipati, MD of Manikya group. This NRI, who took over Mahalakshmi Hotel and gave it an exotic name, La Hospin, is refurbishing it.

Diana Hotels Ltd is setting up a three-star Green Park Hotel with 126 rooms at ADB Road in Kakinada, while Satyarath Realtors Private Ltd is constructing Venki Residency at Salipeta. “We are looking at providing quality hospitality to tourists as well as the business community,” Ch Sivaramakrishna of Satyarath Realtors Private Ltd, which is constructing Venki Residency, a three-star hotel. Shelton group is constructing Shelton Godavari Hotel and Jetty group is coming out with Jetty Grand at Rajahmundry. The managements of La Hospin and River Bay hotels claim that their rooms present a panoramic view of river Godavari for the occupants.

Although the rich and powerful are their target group, the hoteliers claim they cannot afford to ignore the middle class as well. “Not only would we be catering to the industrialists and their food preferences, we would also provide items at affordable rates to others,” revealed G Prathap Raju, director of Manasa Hotels Pvt Ltd.

But the hoteliers of Kakinada are a tad worried, particularly after Reliance Industries Ltd had vacated 11 of the 13 guest houses it hired as work on its Gadimoga onshore terminal project near Kakinada was completed. Besides, the company has a guest house with 84 rooms to provide accommodation to its officials. “We need not hire private hotels,” stress an RIL official. The hoteliers are hoping the occupancy rate would multiply in the coming months. “We are still like fish out of water. Once the occupancy ratio improves, we can say we are better off,” said D Veerabhadra Reddy, MD of Royal Park Hotel.

Meanwhile, the fire services officials have warned the hoteliers against rushing through their projects. “Some of them do not have proper fire safety measures nor have they obtained clearance from us. We will initiate penal action against them,” district fire officer G Yoseph added.