The Hindu Business Line : Entrepreneurs eye boutique hotels

Hyderabad, Aug. 4 The boom in the service sector, particularly the IT industry, that created islands of prosperity in major cities in the country is making boutique hotels an attractive proposition for entrepreneurs.

“Small in size and unique in interiors, the boutique hotels offer a different kind of environment for the customers at prices far below that of the star hotels. Besides, it offers some customers a unique advantage – privacy,” Mr Ashish Vohra, Director of The Residence, told Business Line.

The Residence, the Bangalore-based chain of boutique hotels, opened its fourth outlet in Hyderabad this week.

Mr Shyam Suri, former Secretary-General of Federation of Hotel and Restaurant Associations of India, said the scope was huge for this segment.

“Though not defined properly yet, these hotels do have a good scope. With the number of rooms ranging from five to not more than 100, these boutiques should be design-oriented and follow a different format from that of the regular hotels,” he said.

Mr T.W. Sudhakar, Director of Tourism (Government of India), said the concept was quite popular in Europe and even small countries like Sri Lanka where tourism has emerged as a major revenue generator.

He said places such as Whitefield (Bangalore) and Madhapur (Hyderabad) were potential feeders for the hotels in this segment.

“They get all the benefits and incentives the classified hotels receive provided they comply with the norms,” he said.

“The Residence offers an ambience reflecting contradictions and contrasts in life. Materials used here are both opaque and transparent surfaces with light and dark shades. We at the Residence offer an ambience that reflects both tradition and modernity,” Mr Vohra said.

“The customers would get star hotel comforts (barring the spas and pools) by spending just 60 per cent of the charges,” he said.

More facility

The company, which at present has 110 rooms across the four properties, would have one more facility with 30 rooms in the National Capital Region this year.

“We are also looking at opening one near the upcoming international airport in Hyderabad. By 2010, the chain would have 20 units,” he said.

“We spent Rs 4 crore in the Hyderabad property. Instead of putting all your monies in one large product, it is good to have smaller properties in several places,” he pointed out.

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