It was another round of failed auctions for the Delhi Development Authority, or DDA. Only three out of the 19 hotel plots put on the block could find any takers despite the DDA slashing reserve prices by over 20 per cent, reports CNBC-TV18.

Falling realty prices forced the DDA to cut down the reserve prices of the hotel plots that it had put up for auction across the capital. But even that failed to excite bidders.

Sources say, of the 19 plots auctioned in areas like Dwarka, Mayur Vihar and Harinagar, only three were sold. While the total reserve price for these three plots was Rs 43.28 crore, DDA managed to rake in only about Rs44.28 crore. That is only about 1 per cent more than the reserve price.

Vivek Dahiya, Associate Director, DTZ India said, "There is very little demand for hotel rooms in these areas. DDA follows the standard policies of district centres and community centres having hotels. But these areas in Delhi do not need hotels."

The DDA''s decision to only auction plots for five-star hotels was the reason behind the sluggish response. Experts say these areas will not see enough traffic to justify prices. Hoteliers are willing to pay big bucks for prime location. For instance, in the last such auction held by DDA in Jasola, the Emaar MGF Group picked up land at Rs 100 crore an acre.

Hotel Leela Ventures picked up a plot for Rs200 crore an acre in the posh Chanakyapuri area in an auction by NBCC last month. So, even though prices in this round were three times lower, bidders were hard to come by.