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The Tatas’ Indian Hotels Company Ltd is likely to invest about Rs 700 crore to add about 3,000 new rooms in its properties under the Gateway Hotels and Resorts brand by 2015.
Currently, it has over 2,000 rooms in 21 properties, including four in Gujarat, which collectively have 400 rooms. This has made Gateway the single largest hotel brand in Gujarat tourism.
The 22 new Gateway hotels at various other destinations, with 3,000 rooms under construction, will make it one of the biggest hoteliers to offer 5,000 rooms in the next four years.
In gir forest
The latest to join the Gateway chain is the one at Sasan Gir National Park in Junagarh district of Gujarat, one of the only two natural habitats of Asiatic lions in the world with a total of 411 big cats counted recently.
Gateway has revived an old Taj property, which would also offer a jungle safari in an open jeep, besides expeditions to other nearby places including the Somnath Temple.
Green-field projects
Of the new properties, 10 are under management contract and 12 green-field projects which are expected to get going by 2014, Mr P.K. Mohankumar, Chief Operating Officer, Gateway Hotels, told Business Line here, after the launch of the Gir property.
Each of these hotels will have 150-200 rooms. “We are not having equity participation in our properties.”
These rooms are expected to involve an average outlay of Rs 35-40 lakh “per key”, i.e. per room, excluding the cost of land for the project. Thus the 10 green-field Gateway hotels, with 1,800 rooms, could involve an investment of nearly Rs 700 crore.
With another 1,200 rooms under management contract, the company will have 3,000 rooms ready by 2015.
Forest lodges
Gateway also plans to have forest lodges across India. With an expected 70 per cent occupancy, investments could be recovered in nearly six years.
Gateway, the no-frills, full-service brand of Taj Group, is now expanding to have four and five-start properties in the upscale segment, in most Tier-I and II cities having airports.
In the metros, it plans to have multiple Gateway properties and have one each in the State capitals and the second biggest city in each State.
Gateway has also tied up with Ambuja Cement Foundation in Kodinar, Junagarh, to provide skill training to local youth interested in careers in hospitality.
A short-course in house-keeping and restaurant service will begin at Kodinar in October-end.
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