 "Sarovar travels light to build a brand")
In a country where pilgrimages are the lifeblood of its vast and unorganised travel industry, it was really a matter of time before branded hospitality chains cashed in. Sarovar Hotels and Resorts, which currently manages over 70 properties in 48 destinations in India and abroad, has stepped into the gap with its newly opened Marasa Sarovar Premiere in Tirupati, in alliance with the Uganda based Madhvani group. This is the first of eight such hotels that the Sarovar-Madhvani combine plans to open in popular pilgrim spots . Apart from this, the New Delhi-headquartered hospitality company is also planning to bolster its presence in small towns and untapped tourist destinations in India, riding on an asset light model where it manages and services the properties in partnership with a large chain.
| HOTELS ON THE HOLY TRAIL |
The domestic travel business has boomed in recent years. And as new investments give rise to new hospitality brands, many have tapped into the pilgrim trails that run across the country
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Sarovar is not alone on the holy trail; Starwood Hotels, which owns the St Regis, Le Meridien and Westin brands among others, has a similar strategy. The Tata group's Roots Corporation is also into key pilgrimage centres. It has a 100-room Ginger property in Katra, near Vaishnodevi and 125-keys properties in Tirupati, Shirdi, Udipi, Ajmer and Haridwar.
Sarovar wants to feed into the growing domestic travel numbers too as do many new hotel chains who have found value in wooing domestic travellers. The Fern group is present in Tezpur, Tirupur and Asansol; the Keys brand operates properties in Puri, Agartala and Nasik. And Fortune and Lemon Tree, rivals to the Sarovar brand, are also present in similar geographies.
Sarovar hopes to tackle the competition by being present in the maximum number of destinations and by sticking to its partnership model. It says that it plans to expand its portfolio, adding a total of about 20 hotels in two years. It expects to invest close to Rs 800-900 crore in its new properties with the bulk coming in from business partners. Anil Madhok, managing director, Sarovar Hotels said that the company is looking at an asset light model, largely adopted by the global chains. It has styled itself on Intercontinental Hotels Group (IHG) which works with different partners and supports a number of hotel brands under its umbrella. IHG is also rapidly spreading its India footprint, adding 51 hotels to the existing 25 hotels in next five years, going head to head in many towns with Sarovar.
Most hotels are eyeing the widening pie of Indian travellers touring India. According to the ministry of tourism, the number of domestic tourists visiting domestic destinations is growing at a fast clip; in 2014, the numbers grew by close to 12 per cent over the previous year just a shade lower than the 13 per cent growth in the number of international travellers into India.
Changing market dynamics has brought about a change in the way hotels deploy their assets too. Until recently, the focus was on metros and popular tourist destinations. But as more Indians travel to offbeat destinations and small towns, the hotels are doing so too.
Madhok agrees that a significant development in the Indian hospitality scenario in the last decade has been the emergence of micro markets. "We are also looking at resorts and hill stations as we feel that as the country progresses, creating a bigger middle class and with people take more frequent holidays, these destinations will be very lucrative," added Madhok.
True but clearly there will also be a need for the multiple hotel brands to differentiate their offerings. "Our USP is quality service at affordable price," said Madhok. Besides, he added, Sarovar has the first mover advantage in several emerging destinations including Tier 2 and Tier 3 cities. Sarovar manages its properties under three brands - Premiere which looks at 5-star hotels, Portico for 3 and 4 star hotels in cities and Hometel for budget and economy stays. All hotels are operated as partnership ventures; Sarovar offers technical support and design, construction and management services.
Madhok claims that the total brand turnover for Sarovar is around Rs 4,000-5000 crore. According to him Sarovar's objective is to provide value for money and he said, "We provide true value for money in all segments, hence our prices are most competitive, but not the cheapest."
While the company has a significant presence in west and the south India, in the future the focus will be on growing in the northern and eastern part of the country. Sarovar wants to set up hotels in Lucknow, Agra, Patna, Ranchi, Mysore and Bhopal. It is also looking to increase its presence in Africa where it already has three hotels and step into the Middle Eastern and Far Eastern markets too.
