SRI plans more budget hotels

Vizag-based SRI Hotels and Restaurants Private Limited, a newly-incorporated hospitality group, is planning to set up more budget hotels in the state under the 'Orange' brand. The first of these 'Orange' budget hotels is coming up at Sarawathi Junction in the city.

"Our first 'Orange' budget hotel, with 45 air-conditioned rooms, will be operational from next month. We have invested around Rs 1.2 crore in this hotel," M Srinivas, managing partner of SRI Hotels and Restaurants, told Business Standard.

Besides Saraswathi Junction, the company is scouting for two more suitable locations in the city including the Siripuram Junction and Sathyam Junction for setting up budget hotels, each with around 50 rooms.

"We also have plans to set up 'Orange' budget hotels in tier-II cities like Kakinada, Rajahmundry, Guntur and Nellore over the next three-four years," he added.

Maintaining that the company would not invest in land and buildings for its budget hotels, Srinivas said that the company would follow the concept of leasing buildings in prime locations and convert them into budget hotels.

"Hence, our investment will not exceed Rs 1.5 crore to Rs 2 crore in each hotel. This would also enable us to recover our investments in a lesser period," he said.