Diversified player Litolier Group today announced its entry into the hospitality sector by formally opening its first hotel in the city and plans to develop two more properties in Mumbai and Goa.
The Ashok Mittal-promoted company has tied up with the global hotel franchise group Wyndham Hotels for the Ramada Plaza brand and said it is in talks with other international hospitality groups for its upcoming property in Mumbai.
"We have received franchise licence from Wyndham Hotels for the Ramada Plaza brand and our new hotel in Delhi is the first hotel in India to come up under this brand. We are now planning to open another hotel in Mumbai within two years, besides looking at Goa," Litolier Group Chairman and Ramada Plaza Delhi Director Ashok Mittal told reporters here.
He, however, refused to disclose the company's planned investments for the hospitality business.
"We have so far invested Rs 100 crore from internal accrual and debt for our Delhi hotel, which was soft-launched some time back. It has an inventory of 419 rooms and we plan our Mumbai property to have 350 rooms," Mittal said.
Wyndham Hotels currently has seven Ramada hotels in India operated by individual franchise partners. The Ramada Plaza is the "topline" premium sub-brand of the international hotel chain, which include Ramada and Ramada Encore also.
The Litolier Group is engaged in interior lighting and real estate business.
Mittal said the Litolier Group is keen to develop the Ramada Plaza Delhi as the first boutique hotel under the Ramada brand in India, with a host of features like oriental and India restaurants, spa and aqua beds and a discotheque.
"We are negotiating with some international hospitality groups for licencing the planned Mumbai property," he said, without divulging details.
He added that the company has also purchased a plot of land in Goa and "we may go there also for another hotel".
Asked about the impact of the current downturn, Mittal said: "During the soft-launch period of our Delhi hotel, the normal occupancy rate was 70 per cent, although currently it is down to 30 per cent. However, there is a dearth of hotel rooms in the country and we are keen to tap the market."
