Ginger Hotels to open in malls

After hotels in malls, Ginger Hotels is now looking at positioning itself in commercial complexes.

Ginger Hotels, the no-frills brand by Roots Corporation, a 100 per cent subsidiary of Indian Hotels which operates Taj Hotels Resorts and Palaces, is in talks with real estate developers to rent space in commercial complexes to run its hotels.

"We are in talks with developers to provide us with the space in commercial complexes where we can have at least 100 hotel rooms," said Prabhat Pani, CEO, Ginger Hotels.

Rising real estate costs have prompted the company to look at different models where it can not only save on the cost of acquiring land but also position itself at prime locations.

It is also developing its first property at a mall in Ludhiana, Punjab, where it has rented the fourth and fifth floors. It will be operational by January 2008. This hotel will have a separate entrance as well as separate elevators.

"The advantage of having a hotel in a mall is that we not only get to set up our property at prime locations but can also be faster off the ground," said Pani.

"Besides, hotels at malls are a value-add to the customer, considering that malls provide a wide range of food and entertainment options. This would also save us from spending on separate food and beverage outlets, or a restaurant."

The hotels will either be located on the top floors of a mall or in a separate building on the premises of the mall.

"Mall owners are also keen on finding business where they can rent out a large amount of space. This model fits into our way of operation and we plan to have more hotels atop malls," said Pani.

In this arrangement the Ginger Hotels works out the floor plan with the developer before the construction of the mall begins. Ginger Hotels puts the civil structure in place and suggests the exteriors.

Ginger Hotels has planned two more hotels at malls in Amritsar and Mohali that will come up in the next 18 months. It has also signed a contract with Himalaya Mall in Ahmedabad.

The company is also looking at establishing hotels at IT parks and special economic zones.