Islamabad: The Capital Development Authority (CDA) has proposed the construction of two new five-star hotels in Sector F-5, and a summary seeking the federal cabinet’s approval for this project has been forwarded.
Following a decision made in a meeting chaired by Prime Minister Shehbaz Sharif, the CDA prepared the summary. The agency will present three frameworks to the cabinet for consideration.
The summary, submitted through the Interior Ministry, includes three options: freehold rights, public-private partnership mode, and leasehold rights. Each option will be accompanied by its advantages and drawbacks.
Plot No. 6 near the Pakistan National Arts Council (PNCA) and Plot No. 8 (behind the Marriot Hotel) are being considered for the construction of these hotels. The combined worth of these plots is estimated to be around Rs20 billion.
Given Islamabad’s role as the gateway to the country’s northern areas and the consistent flow of tourists, there is an urgent need to address the lack of high-end accommodations.
The picturesque location and easy accessibility of these plots promise high turnover potential. Luxury hotels are considered enduring assets, with an anticipated return period of 8-9 years and minimal depreciation, ensuring the long-term capability of this venture.
Although the CDA had previously attempted to auction these plots, it was unsuccessful as cabinet approval was required. However, this time, both the CDA and the federal government are on the same page regarding these plots.
There are indications that a foreign country, particularly Saudi Arabia, may invest in this project. The Saudi government plans to invest up to $5 billion in the national economy, as demonstrated by a recent high-powered Saudi delegation visit aimed at enhancing bilateral economic cooperation and advancing previously agreed investment deals. For the latest Real Estate News and Blogs, visit Realtorspk blogs.
