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ISLAMABAD: The federal capital is likely to house two more five-star hotels as the Capital Development Authority (CDA) has moved a summary seeking the federal cabinet’s approval for the construction of these hotels in Sector F-5.
Sources in the interior ministry said the summary was prepared by the CDA in light of a decision taken in a meeting chaired by Prime Minister Shehbaz Sharif on Tuesday. They added the civic agency would prepare three frameworks in this regard that would be placed before the cabinet to have its pick.
The summary was moved via the interior ministry for its onward submission to the federal cabinet. The CDA was also asked to include advantages and drawbacks for every framework so that the executive could pick a suitable model. Sources said that three options were going to be placed before the federal cabinet: freehold rights, public-private partnership mode, and leasehold rights.
They added that there was a dire need for new luxury hotels in Islamabad as merely 4,000 rooms per night were available in Islamabad while the demand for the rooms exceeded over 8,000 rooms.
Three plans to be placed before federal cabinet for the best possible option
Sources said Plot No. 6 near the Pakistan National Arts Council (PNCA) measuring 4.51 acres and Plot No. 8 measuring 3.73 acres (back side of Marriot Hotel) are cumulatively worth Rs20 billion. Both pieces of land hold significant promise for the development of upscale hospitality offerings since they are located next to the key administrative headquarters and offices of government entities.
They said that the proximity of both plots to the Diplomatic Enclave accentuates their suitability for luxury hotel development, meeting the needs of diplomats and high-profile visitors. “Islamabad’s role as the gateway to the country’s northern areas ensures a consistent flow of tourists, underscoring the urgency to address the scarcity of high-end accommodations,” said sources, adding that there were only two five-star hotels in the city.
Additionally, the picturesque location of both plots, coupled with their easy accessibility, promises high turnover potential, the sources said, adding, “Luxury hotels are esteemed as enduring assets, with an anticipated return period of 8-9 years and minimal depreciation, affirming the long-term viability of this venture.”
It is relevant to note that the CDA had tried to auction the said plots several times but failed as the approval of the cabinet was mandatory to put these plots up for auction. Last year, one of the plots was part of the auction list, but the CDA had to withdraw it at the eleventh hour because the cabinet was not consulted.
However, this time the CDA and the federal government are “on one page” regarding these plots.
According to insiders, there are chances that a foreign country, particularly Saudi Arabia, will invest in this project as the Saudi government plans to pump up to $5 billion into the national economy.
Recently, a high-powered Saudi delegation led by the Kingdom’s foreign minister also visited Pakistan aimed at enhancing bilateral economic cooperation and pushing forward previously agreed investment deals.