Amidst news of Noida becoming one of the biggest hotel hubs in the country - with analysts expecting more than a dozen five-star hotels with an estimated inventory of around 2,500 rooms to come up in the area - two of the 13 developers have withdrawn from the city's bidding race for hospitality space as per a report in TOI by Vandana Keelor.

ITC and Bharat Hotels have surrendered their plots with immediate effect to the Noida Authority. Both ITC and Bharat Hotels had each purchased plots measuring 23,464 sqm in sectors 97 and 96, respectively. According to Authority officials, the non-viability of the project due to the exorbitant cost of the land in Noida could be the reason for withdrawal by the companies.

Sources say there a likelihood that some more hotels could also pull out on the same grounds by the last date of surrendering plots. "As per the directions of the apex court, developers who were allotted land to build hotels had the option of withdrawing and surrendering their plots. Three hotels, namely ITC, Bharat Hotels and Hampshire have relinquished their land," said Balwindar Kumar, chairman and CEO of Noida Authority. "We will facilitate the process of withdrawal as soon as possible," Kumar said.

In 2006, during the tenure of then chief minister Mulayam Singh Yadav, land was allotted to build hotels for international visitors to the 2010 New Delhi Commonwealth Games. Fourteen hospitality majors bid for space along the Noida-Greater Noida Expressway at a meagre rate of Rs 7,400 per sqm under the industrial land use category.

However, when Mayawati came into power in 2007, all 14 lease deeds were scrapped citing corruption in the land auction.

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