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Bangalore-based hospitality group Royal Orchid Hotels plans to open seven properties in the country this year, of which six will be management contracts.
The hotel, which has 18 properties operational currently, wants to close the fiscal with 25 properties, while looking at a “similar or better” growth next year.
“We are going on an asset-light strategy now, since we have a reasonably good asset base. This year, we will be moving from 12 to 25 properties, and look at a similar or better growth next year,” Mr Chander Baljee, Chairman and Managing Director, Royal Orchid Hotels.
The company currently operates over 1,600 rooms, and would add over 1,200 rooms in the next two years.
Mumbai & Hyderabad
The group has a few properties under construction — Mumbai and Hyderabad.
“The Hyderabad property will be open this year, and the property in Mumbai will take two years to build,” he said.
The Hyderabad property will be under the five-star Royal Orchid brand, while the Mumbai property will be under the four-star Royal Orchid Central brand.
Plans another brand
Besides, the group, which also has the Royal Orchid Suites brand (serviced apartments) and Royal Orchid Resorts, is now looking at launching another brand.
“We are exploring another brand to take care of properties that don't fit in our existing brand portfolio,” said Mr Baljee.
The company hopes to finalise on the new brand in the next couple of months.
Royal Orchid Hotels also operates the three-star Ramada Bangalore property under a third-party management contract.
Fund raising
According to him, for now, the company would focus on its Mumbai property, and its properties in Delhi, which it has taken on lease and will be operational soon.
“If we have to do further acquisition or expansion, we will look at raising funds, creating a war-chest,” he added. The company is ready to raise Rs 100 crore to Rs 200 crore now, said Mr Baljee.
Tanzania expansion
The company also proposes to start work on its Tanzania property, “as it is time to focus on that property for which we picked up land before recession,” he pointed out.
The resort in Tanzania would be a 150-room property, and plans are afoot to pursue expansion in that region, he added.
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