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Business Standard

Delhi's Nehru Place to get 500-room luxury hotel under ₹10,000 cr DDA deal

In a landmark move that signals a strategic overhaul in urban land use, the Delhi Development Authority (DDA) has awarded a Special Licence Property (SLP) project to Fleur Hotels Pvt. Ltd., a subsidiary of Lemon Tree Hotels. The development will feature Aurika, a five-star luxury hotel located on a prime 2-acre plot in Nehru Place. The project is expected to generate approximately Rs 10,000 crore over a 55-year period. "The bidding process, conducted on August 13, saw Fleur Hotels secure the project with an annual license fee offer of Rs 27.19 crore, about 50 per cent higher than the reserve price," DDA said in a statement. Key Highlights: Licensing Model Breakthrough The SLP initiative replaces the conventional freehold and perpetual lease frameworks, allowing DDA to retain ownership while securing long-term revenue through an annual licensing structure Revenue Windfall Fleur Hotels emerged victorious in an auction held on August 13 with a winning bid of ₹27.19 crore per year—50% above the reserve rate of ₹18 crore. Over the 55-year license period, this is expected to generate approximately ₹10,000 crore for the DDA Grand Hospitality Development Named Aurika, Nehru Place, the upcoming hotel will span over 500 rooms and offer signature dining, expansive banqueting spaces, and premium leisure amenities. It is set to be one of the largest luxury hotels in Delhi Strategic Positioning Located in one of the capital's key commercial hubs, Nehru Place boasts excellent connectivity and strong demand drivers, making the site ideal for both business and leisure travelers. For Lemon Tree Hotels, this is a strong confidence vote in their Aurika luxury brand and overall expansion trajectory. DDA's move to retain land ownership while leveraging prime real estate via licensing indicates a robust revenue-generation model without compromising future flexibility. Lemon Tree Hotels caters to over 1.5 million guests annually across 110+ hotels in 75 cities, and the Nehru Place project will strengthen its presence in the Capital. 'Delhi has always been a strategic focus for us. Aurika's entry will deliver a luxury experience that's about living, not just staying – a landmark in style, comfort, and service for the region,' said Patanjali Keswani, chairman and managing director of Lemon Tree Hotels. Apart from Nehru Place, DDA has identified six prime land parcels across Delhi—lying unused or encroached for years—for fresh commercial development. The pipeline includes a Gold Souk in Dwarka Sector 22, office complexes in two Rohini sectors, luxury hotels in Nehru Place and Dwarka Sector 23, and a hospital in Dwarka Sector 9. While Nehru Place is the smallest plot at 0.9 hectares, the largest is a 9.3-hectare site in Rohini, planned for a major office hub.