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The company plans business hotels in cities such as Kochi and Chennai, which will be part of a mixed usage plan of its parent Brigade Group. The firm will open a luxury hotel Grand Mercure in Mysore this year, aimed at tapping the business as well as the tourist segment.
"There is growth opportunity in building small niche hotels. It would be part of the mixed used community for business and residential properties," said Nirupa Shankar (pictured), Director of Brigade Hospitality.
Brigade has two large luxury hotels in Bengaluru, Grand Mercure and Sheraton and plans two more properties - on in the city centre and one near the airport to expand its presence in the city.
"The total number of hotel rooms in Bengaluru has doubled in the last few years. Yet, room occupancy is pretty high due to business travellers," she said. "Yes, average rates have come down; higher occupancy of over 60% in most hotels show there is room for growth"
Shangri La is opening its new property in Bengaluru in September, joining the list of hotels such as Ritz, Marriot and the Taj Group expanding in the city.
The hospitality group contributes 12% of the group's total revenue and 19% of gross profits for the company. The firm, Shankar said, would fund new hotels through a mix of debt and internal accruals.
Brigade has partnerships with global hotel chains such as Sheraton, Grand Mercure, Holiday Inn and Holiday Inn Express and licenses these brand names for individual hotels based on the business requirements. "The branding and the operational network it provides help us high occupancy," she said.
Brigade Group, which has licensed the World Trade Centre brand for Southern capitals and Kochi has expanded its business with industrial catering, banquets and events at its properties as well as corporate customers.
"We felt it is a natural extension. Our goal is to ensure that all these businesses are self funded and show growth," Shankar said.
