Sarovar Hotels and Resorts, a prominent player in the business of management of hospitality projects in India, plans to infuse Rs 100 crore to set up own properties under its brand ‘Hometel’.
Talking to Business Standard, Managing Director of the company Anil Madhok said the company was restricted managing the properties owned by others for the past fifteen years. It discerned a huge potential for the budget hotels in India and planned to invest under the umbrella of ‘Hometel’.
“After having a successful experience of budget hotels in Mumbai, Hyderabad and Bangalore we aim to expand in Chandigarh and Chennai. The Chandigarh property should be operational by the end of this February and we are close to clinch the land deal for two economy hotels in Chennai. After the approvals it should take 14 months to complete the projects”, he said.
He added that the company was open to partnerships for hometel brand but the project had to be started from scratch as the room size and other specifications should adhere to the concept of the economy hotel, so the management of the existing property under this brand was not possible.
Hometel would provide a limited hotel service with central air-conditioning and a restaurant.
The company is into management of 41 hotels (three, four and five star) and 20 more are likely to be added by the end of this year.
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Sarovar would shortly roll out its services at Baddi, Mohali, Derabassi (all in the vicinity of Chandigarh) and Chandigarh in north of Delhi and six more in Delhi in a short span of time.
Madhok added that the occupancy level of 80 per cent was an indication of growing number of tourists and corporate travellers.