The Hindu Business Line : Sarovar plans to add 25 new hotels

Some of the new hotels will be company-owned properties, said Mr Ajay K. Bakaya, Executive Director of Sarovar Hotels Pvt Ltd. This marks a departure from the company's existing strategy of only managing hotels and resorts. The first company-owned hotel will open in Indore by February next year, he added.

Also on the cards are company-owned hotels in Chennai and Hyderabad, Mr Bakaya said. Sarovar Hotels, which now manages 35 properties across the country, will begin its international foray with a business hotel in Dar es Salaam, Tanzania and another hotel in Dubai, he added.

Budget hotels

Over the next few years, the budget hotel segment will see the highest growth rates, Mr Bakaya pointed out. In keeping with this trend, Sarovar Hotels expects to set up at least 10 hotels under its Hometel brand over the next five years, he said. Positioned as a `limited service' three-star hotel, the first Hometel opened in Bangalore in February.

Hyderabad, Mumbai, Jaipur, Pune and Gurgaon are some other locations in which the company plans to set up hotels under the Hometel brand, he added.

In response to a query, Mr Bakaya said that the company is working towards an IPO in about four years. In December last year, two private equity firms, Bessemer Venture Partners and New Vernon Private Equity Ltd, invested in Sarovar Hotels, he added.

The company also plans to establish a chain of speciality restaurants in association with the Peerless Group, he said. Called `Aaheli', the restaurants will serve Bengali cuisine. The company already operates an `Aaheli' restaurant in Kolkata and plans to introduce this concept in other Indian cities, he added.