The Hindu Business Line : Berggruen begins work on `Keys' budget hotel

Thiruvananthapuram March 15 Berggruen Hotels, owned by the New York-based Berggruen Holdings, has acquired hotel sites in seven locations across the country and is finalising the details of another 24 sites.

Announcing this on Thursday, Mr Sanjay Sethi, Chief Executive Officer, Berggruen Hotels, said the company has started construction work on its first property — a `Keys' boutique budget hotel in Thiruvananthapuram. In the next five years, it plans to build 38 budget and mid-market hotels and resorts under the `Keys' brand, he added.

The company is also in the midst of discussions on starting `Keys' hotels in Vietnam, Egypt and Morocco. However, it is not confining its search for international locations to these three countries. The company hopes to have at least 40 international properties by 2010-11, Mr Sethi added.

Structural details

`Keys' hotels will vary in size from 100 to 170 rooms and will be owned and operated by Berggruen Hotels. The company is primarily interested in buying sites or leasing them, but is also open to joint ventures, he said.

Rooms will start at Rs 1,400 a night, but prices will also be determined by the city in which the hotel is located, said Mr Partha Chatterjee, Chief Marketing Officer, Berggruen Hotels.

Expansion plans

In Goa, Kovalam in Kerala and outside Mumbai, the company is looking at building resorts. Discussions on these properties are currently on, Mr Sethi said.

In Bangalore, Mumbai and Kolkata, it is looking at setting up serviced apartments in addition to budget hotels. Some cities such as Bangalore will have more than one property and larger cities will have bigger hotels, he added.

The 106-room hotel is expected to welcome its first guests in June 2008, Mr Sethi said. In Kerala, the company is also looking at sites in Kochi, besides the proposed resort in Kovalam.

Berggruen Holdings has also invested in setting up hospitality training institutes in India. These institutes are planned in locations across the country and will offer a range of short-term courses, Mr Sethi said.