Apeejay Surrendra keen to expand in mid-market hospitality segment

Kolkata-based Apeejay Surrendra Group is looking to expand its presence in the upscale mid-market hospitality segment through the “Zone by The Park” brand.

The proposed hotels — each ranging between 70 and 100 rooms – will come up in Raipur (Chhattisgarh), Goa, Jodhpur (Rajasthan) and Mahabalipuram (Tamil Nadu).

At least three of its four proposed properties have been lined up for inauguration within this year.

Apeejay Surrendra Group owns The Park group of hotels. The Park has two sub-brands — ‘The Park Hotels’, catering to the premium end, including luxury boutiques, and ‘Zone by The Park’ catering to managed properties and targeting the mid-market–to–upscale segment.

According to Vijay Dewan, Managing Director, Apeejay Surrendra Park Hotels Ltd, at least 200 more rooms are expected to be added to its existing tally of 175 (under the ‘Zone by The Park’ brand).

The current 175 rooms are spread across three properties — one each in Coimbatore and Chennai in Tamil Nadu and another in Jaipur, Rajasthan.

“We will expand the Zone by The Park brand. These are mostly managed properties and through these we will add 200 more rooms to our existing tally of 175,” he told BusinessLine on the sidelines of a CII summit on tourism.

In the case of managed properties, the construction cost per room is expected to be around ₹50-60 lakh (borne by the developer), while in the case of owned greenfield properties it is around ₹1 crore, market sources said.

Asked about the possibility of starting work on its second property, under The Park brand, here in Kolkata, Dewan said: “We are in discussions. Work will start at the appropriate time.”