 "Berggruen Hotels eyes to reach break-even by next year")
The hotel group is funded by New York-headquartered proprietary fund Berggruen Holdings.
"The revenues of Berggruen hotels have been growing at the rate of 80-100 % and will continue to double year-on-year with our growth strategy. Keys Klub is the fourth Indian brand of Berggruen Hotels. In less than six years, we are expected to reach a break-even next," Berggruen Hotels Managing Director and CEO Sanjay Sethi said.
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Berggruen Hotels has invested heavily during its initial years and is now looking at major expansion by choosing the asset light segment by including management and franchisee business models, he added.
The hospitality group has till now made a total investment of $62 million in equity and Rs 182 crore in debt.
Berggruen Hotels launched its first brand 'Keys Hotels' in January 2007, and positioned it as mid-market hotels.
At present, the group has four brands - Keys Hotels, Keys Resorts, Keys Apartment and Keys Klub - and 14 hotels that are operational with around 1,400 rooms.
Berggruen Hotels is planning to expand across the country in cities which have multiple driver of business, Sethi added.
"We are eyeing total portfolio, including under development properties, of 75 hotels with 6,600 keys by FY16," he said.
The group is planning to add at least 2 Keys Klub Hotels into its bouquet every year in its target cities, including Mumbai, NCR, Ahmedabad, Chennai, Jaipur, Kolkata and Hyderabad by 2016, and expecting combined revenue of Rs 410-430 crore from the owned and managed hotels, he said.
Talking about its overseas plans, he said the company's immediate focus will be the SAARC nations.
"We are in talks in countries like Sri Lanka, Nepal, Bhutan and Maldives. We may announce something this year. Our immediate overseas expansion will be in and around the SAARC nations," he added.