Sarovar to set up 25 no-frills hotels

Sarovar Hotels and Resorts, a company conceptualised to offer management and consultancy services to hospitality projects, has plans to set up about 25 limited services "no frills" hotels under the brand "Hometel" in the next five years.

According to Anil Madhok, managing director, Sarovar Hotels and Resorts, the company plans to mobilise an investment of Rs 200 crore in 50 Hometel projects, of which 25 would be owned and the rest managed by the Sarovar group.

He added that Hometel had an edge over its competitors as it would offer a self-help restaurant and a small bar, an exclusive feature for budget hotels.

Sarovar Hotels and Resorts is setting up four hotels across India that will be owned and managed by the company. Sarovar is in the process of completing four Hometel projects, one each in Chandigarh and Hyderabad and two in Chennai.

The company will open 13 managed hotels in the next two years.

With this, Sarovar will have a pan-India presence under the brands Sarovar Premier, Sarovar Portico, Hometel and Park Plaza and Park Inn.

Madhok said the escalating land prices across the country had dented profit margins but the rising tariffs had offset the effect of rising costs to some extent. The rise in cost of fixed assets was not a deterrent because of the increase in domestic tourists in the past few years.

The group also plans to increase the number of pubs under its brand Geoffrey's. "We have eleven outlets under the brand Geoffrey's and propose to roll out three more in the next few months," he added.