Radha Group of Hotels, which has three budget hotels in Chennai and Bengaluru, has launched a luxury hotel Feathers in the western part of Chennai.
The 186-room hotel has come up on 3.6 acres near the Chennai Trade Centre. Feathers hopes to tap into the lack of luxury hotels in the area, which is close to the industrial corridors of Sriperumbudur and Oragadam.
He said the company’s better financial management also gave the confidence to venture into luxury hotel space. “We have been a debt-free group so far. Our hotels in Chennai and Bengaluru are doing well with good occupancy ratio,” he added.
The company has funded this project with ₹111 crore debt and own funds.
The hotel has been built at a cost of ₹170 crore, excluding cost of land and interest during gestation. Rupam Dutta, General Manager, Feathers Hotel, said the hotel could attract guests from companies located in the manufacturing corridors of Chennai and the DLF IT SEZ.
Its proximity to hospitals such as MIOT and Sri Ramachandra Medical University will help in promoting medical tourism.
“We are in the process of finalising deals with three big manufacturers and three big IT giants,” he added.
Bhavani Ravishankar, Chief Financial Officer of the Group, said Feathers would aim to achieve cash break-even in about six months in view of strong traction in hotel occupancy levels.
The group had revenues of about ₹45 crore in 2015-16 and is hoping to end this year with about ₹80 crore.