Mumbai being the most expensive city when in comes to night charges in hotels according to a on-line portal survey, a budget hotel from the house of Tatas could perhaps provide the ideal stay for travellers.
Roots Corporation, the 100% subsidiary of Indian Hotels Company (IHCL). which runs the Taj chain of luxury hotels in Indian and overseas, will open its 26th Ginger property in Mumbai on October 22.
The hotel brand, which primarily caters to budget travellers, has come up in Andheri (east), a suburb of Mumbai, from where the city airport is at a distance of less than five kilometers.
The economy brand, which enjoys a strong brand pull in the market boasts of an annul average occupancy rate of more than 70%. Launched with an attractive price tag of Rs 999 per night eight years ago, the average room rate at Ginger today is Rs 1,800-2,000.
The only competition from the branded hotel space for Ginger is the Formule 1 hotel brand from French hotel giant Accor. However, Formule 1 comes at a slight premium than Ginger, has two operational properties, and yet to finalise a deal in the Mumbai area.
Roots Corporation has already invested Rs 400 crore so far in expanding the Ginger footprint. A majority of its properties are owned by the company. Future expansion of the brand will be now more in metros and tier I cities.
It plans to add 54 more properties over the next 3-4 years. The company is looking at developing a total of 700 rooms in various cities in the current financial year with an investment of around Rs 90 crore. Its last property was opened in Chennai in July.
