Apeejay Surendra Group has unveiled its plans to collaborate with Ambuja Neotia Group to build a luxury hotel and serviced apartments in the Indian state of West Bengal, according to the Telegraph India.

The hotel and serviced apartments will be developed on 3.5-acre land on EM Bypass, in the state's capital city Kolkata.

The Park Hotels owner, Apeejay Surrendra Group, will own and manage the 250-room luxury hotel, while the serviced apartments will be built by Ambuja Neotia Group.

The total area for development on the plot will be roughly 600,000ft², with the hotel section occupying more area than the serviced apartments.

In 2008, Apeejay Surrendra Group bought the land for Rs1.35bn ($16.24m) in an auction.

However, due to a tax disagreement with the Kolkata Municipal Corporation, the development was put on hold.

Apeejay Surrendra Group chairman Karan Paul was quoted by the news agency as saying: "I think it is a fortuitous moment that the project is taking off now. The pipeline for five-star luxury hotels in Kolkata is minimal in the next five years and there is a lot of appetite for luxury apartments too."

Apeejay Surrendra Group plans to invest about Rs3.75bn ($45.19m) to Rs4bn ($48.20m) in the hotel, which is expected to open in four years.

After securing the clearances, construction of the project is estimated to begin in the next nine to 12 months this year.

Ambuja Neotia Group chairman Harshavardhan Neotia said: "If you look at the residential projects close by, they have all done well. So I believe there is going to be enough demand for such serviced apartments."

The hotel and the serviced apartments will be situated on a 2km section along the bypass, which features residential projects and three luxury hotels: JW Marriott, ITC Royal Bengal and ITC Sonar.