Berggruen of US to set up 38 budget hotels in India

Construction of Keys Hotels in Thiruvananthapuram begins.

The US-based Berggruen Hotels has lined up as many as 38 budget hotels in different parts of India in the next five years.

The company has kicked off construction of the first of its chain of boutique budget hotels, Keys Hotels, in Thiruvananthapuram. Berggruen Hotels is part of the Berggruen Holdings with an equity capital of US$ 100 million.

According to Sanjay Sethi, CEO, Berggruen Hotels, the company has begun building its first Keys Hotel close to the Housing Board junction here.

"Not only is this going to be the first of our global hotel, this will probably be the first Keys Hotel to open its doors to guests worldwide. We believe that there is great potential for a branded budget hotel within the city limits," Sethi added.

Starting with its Thiruvananthapuram venture, Berggruen Hotels will operate 38 hotels in the next five year period, and will be evenly distributed across Tier I, II and III locations in the country, each with 100-170 rooms and a company turnover in excess of Rs 350 crore. Keys would have all double rooms with charges depending on occupancy. Initial pricing will range between Rs 1400 and Rs 2200.

Adding that the company was looking for sites in Pondicherry and Chennai, Partha Chatterjee, chief marketing officer, Berggruen Hotels, said that "with Thiruvananthapuram growing as an industrial and IT centre as well as a hub for medical tourism in recent years, this is an opportune time for Keys to mark its foray into the burgeoning hospitality industry in the region."

He said that Berggruen aims at providing a defining brand of boutique budget hotels in India with the new venture.

The company plans to simplify the booking process for their customers with an interactive website with international designers, a 24x7 call centre with toll-free access, booking through ATMs around the country, a network of travel agents across the globe and through popular travel related websites, Sethi added

As per the plan, the hotels would have a fully equipped business centre and meeting rooms with the services of a business needs solution finder, in-room internet access and a direct dialling facility to take care of all business needs, the Berggruen officials said.

"After work, residents will have a sports bar and all-day restaurant to unwind. They will have contemporary IT-enabled rooms, Wi-Fi, refrigerator, tea and coffee maker, LCD televisions and a gymnasium. Comfort beds with duvets and a relaxing shower will help guests to get refreshed," they added.