The Hindu Business Line : CGH Earth plans expansion

CGH Earth, which operates hotels in Kerala and Lakshwadeep, has chalked outan expansion plan that will take the group outside the State and even see it go global.

"We do not want to be identified as a Kerala-based concern. Our aim is to set up properties in yet undiscovered areas, including remote locations in the North-East and places such as Bhuj in Gujarat," said Mr George Dominic, Executive Director, CGH Earth.

The family-owned group will open its first property outside the State in Gokarn in northern Karnataka next month. The project, spread over 58 acres, will in the first phase, offer 30 deluxe villas priced at $300 per night per villa. The property, called `Swaswara' (Sanskrit for Inner Vibrations), has been positioned as a yoga retreat by the sea.

Built at an investment of Rs 50 lakh per villa, the property is being marketed at the ongoing World Travel Mart in London and, next month, at the International Luxury Travel mart in Cannes.

Talking to Business Line from Kochi, Mr Dominic said the group had also acquired a heritage building at Karaikudi in Tamil Nadu, and the property would be launched by the winter of 2006.

Besides, it has signed a joint venture agreement with the Karnataka Government for a project in Hampi, a heritage site. The Karnataka Government would provide land as its equity in the 30-room project, with CGH bringing in Rs 12-15 crore.

The group has also acquired 200 acres along the coast in Rameswaram district of Tamil Nadu and is awaiting environmental clearance for a project that will come up alongside the proposed Marine National Park. Under its overseas initiative, the company has taken on lease a heritage building in a village near Stuttgart in Germany, which will serve as its marketing arm for Europe. A new company, CGH International, has been floated to operate its overseas ventures.

Billed as a cultural centre, the German property would have an ayurveda centre, an Indian restaurant and will serve as a venue for theatre performances. About prospects for the coming season, Mr Dominic said the State would see a slight dip in arrivals though a higher tariff structure this year would offset to an extent the financial impact of a drop in arrivals.

CGH, he said, would barely maintain last year's performance, when the group recorded a turnover of Rs 90 crore.

The biggest constraint for a predominantly seasonal business such as hospitality was the lack of adequate capacity on international sectors.

Though aviation had been opened up, there was need to expand capacity, especially on the international sector, he said.

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