Big hotel chains plan mega investments
The ITC, Taj and Leela group of hotels are planning new projects with innovative models.
By Manika Gupta, INDIATIMES NEWS NETWORK |
NEW DELHI: It’s boom time for the hotel industry. With room requirement crossing almost 100,000 in the two-three star categories and a need for almost 20,000 rooms in Delhi itself, the big hotel chains are planning mega investments in their new projects and that too with innovative models.
For instance, the Taj Group has drawn up major expansion plans in the mid-market segment with the launch of its brand `Ginger’. The group plans to set up 30 such hotels by March 2008 at a cost
Prabhat Pani, CEO of Ginger said: “we saw a dramatic upsurge in the mid-market segment for someone who was looking for a reasonably priced but contemporary hotel.”
Ginger, a 100 per cent subsidiary of the Taj Group of Hotels, will target both domestic and international travellers.
Pani said these will be `smart basic hotels with wi-fi facility and cyber cafes with ATMs built in. The only thing that these hotels will not have is a swimming pool as it has been realised that many users in this segment do not use the swimming pools.
Pani also said that these conclusions were reached on the basis of key learnings one got from the two hotels that were set up at Bangalore and Hardwar. These were two different models, one catering to business traveler and the other to the religious traveler. These two models will be replicated in all 30 hotels.
For instance, the Taj Group has drawn up major expansion plans in the mid-market segment with the launch of its brand `Ginger’. The group plans to set up 30 such hotels by March 2008 at a cost
Prabhat Pani, CEO of Ginger said: “we saw a dramatic upsurge in the mid-market segment for someone who was looking for a reasonably priced but contemporary hotel.”
Ginger, a 100 per cent subsidiary of the Taj Group of Hotels, will target both domestic and international travellers.
Pani said these will be `smart basic hotels with wi-fi facility and cyber cafes with ATMs built in. The only thing that these hotels will not have is a swimming pool as it has been realised that many users in this segment do not use the swimming pools.
Pani also said that these conclusions were reached on the basis of key learnings one got from the two hotels that were set up at Bangalore and Hardwar. These were two different models, one catering to business traveler and the other to the religious traveler. These two models will be replicated in all 30 hotels.
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Asked about funding, Pani said all the equity elements come from The Taj Group of Hotels, which is the parent company and there may be some debt.
ITC Ltd, which is planning to invest Rs 5,000 crore in the next four years, will have a retail complex along with its hotels. Two of its prestigious projects -- one in Chennai and the other in Kolkata -- are planned to be big hotels with serviced apartments and retail space. The hotels will come with private viewing theatres.
The project will cost Rs 800-1000 crore. It is proposed to be the largest hotel in the country with the single largest investment.
SSH Rehman, executive director, ITC Ltd, said that in the National Capital Region, near the Classic Golf Course, “we are adding a modern super-deluxe resort, one hotel with 100 rooms and 200 villas and a spa”.
Rehman also said that they were evaluating a 400-room hotel in Fraser Town in Bangalore. They were also in dialogue with several parties for sites in Hyderabad, Goa, Amritsar and Gurgaon.
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Leela Group which had announced an investment of Rs 1,000 crore has scaled up its investment to 1,500 crore. It plans to specialise in the `Hotel within a hotel’’ concept. It also plans to convert the Kovalam Beach resort into a 21st century hotel with 60 room added within the beach resort. This is likely to be inaugurated in October-November this year.Start a SIP with as low as ₹500 with ET Money App!
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