US-based 3 Palms Hotels and Resorts is set to enter India, with its first two hotels slated to open in August. The hotel chain is developing three properties initially, two in Rajasthan and one in the Delhi-NCR region.

“The size of the hotels would range from 50-60 units. We will market ourselves as a five-star luxury resort. We are a boutique hotel chain because no two 3 Palms' properties will be the same,” Ms Saumya Sharma, Chief Development Officer, 3 Palms Hotels and Resorts, told Business Line .

The hotel has also tied up with SRM Spa and Resorts in India. The company's first phase of expansion plans entails opening of 15 properties across India in the next five years.

“We are looking at non-metro locations primarily. This is because it would offer us a unique and niche location and enough space to build a resort. The hotel sizes would range from 30 to 100 units. We are looking at outside of the city locations,” said Ms Sharma.

Service tax

On the increased service tax burden on the hospitality sector, Ms Sharma said, “It definitely does make it a bit more difficult to sell the brand and return on investment becomes tough. However, in the price market that we wish to operate in, we are confident that we would be able to sell the offerings.”

She added that the challenge faced by the chain in coming into India is infrastructure. “The only challenge we have had is with timelines which have been caused by infrastructure issues. But despite the problems we are confident that the first three hotels should start within this financial year.”

The hotel chain will also engage in a major marketing initiative before the launch of the hotels. “Our marketing campaign will start five months prior to the launch on various streams of media,” said Ms Sharma.

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