Slow, Yet Steady

ABIL Group prefers a cautious approach to development projects, waiting for each to stabilise, before moving to the next one

- Vinita Bhatia

As a prudent developer, Amit Bhosale, MD, ABIL Group, feels it is better to err on the side of caution rather than get involved in too many projects that will put pressure on the company’s finances. That explains why in the past year, it has been working on stabilising its existing properties like W Goa, St. Regis Mumbai, etc, by upgrading some facilities and changing some facets of its hotels.

Bhosale has a reason for adopting this measured approach. “Our raw material remains real estate, and hotels are capital-intensive projects. Hence, I prefer to build one and let it stabilise as in their initial years, they require a lot of handholding,” he explained.

Often, a developer’s costs are overrun because of delays in getting governmental approvals and towards the end of the project, the rate of interest is very high, which eats into the capital. By entering into a new project at that time, a developer can get into a vicious cycle of overexposure of capital.