Mr Keshav Baljee, co-promoter of Bangalore-based Royal Orchid Hotels, has launched another hospitality chain — Spree Hotels — in the mid-market segment targeting the 35-year-old, fun-seeking, Indian business traveller. The first property, the 42-room Spree Lotus Valley was soft-launched in Pune in July.

Spree Hotels looks at management contracts and leases in the near-term and has already signed 10 management contracts. “We expect to open these in the next two years; by this fiscal-end, we hope to have 4-5 operational properties,” Mr Baljee, Managing Director, Spree Hotels, told Business Line .

The company is looking at Pune, Goa, Delhi, Bangalore and Hyderabad, besides resort destinations. “We will look at having more than one property in each city,” said Mr Baljee. On an average, the properties would have 80 rooms. “Room rates would be between $70 and $120, depending on the city/location,” he said. The tariff at the Pune property is Rs 3,500 a night, offering 24-hour restaurant, business centre and gym, express spa, yoga on the rooftop, wi-fi box in each room, and a cruise-ship concierge.

Royal Orchid Hotels would hold no stake in Spree Hotels, said Mr Baljee. The initial investment from the promoter is Rs 1 crore towards brand development, sales and marketing support and management, while it would get 7-10 per cent of total sales in return.

‘Asset-heavy' strategy

Going forward, the company will adopt an ‘asset-heavy' strategy and look at larger leases.

To fund these and also attain a national footprint, Mr Baljee said the company would raise Rs 50-100 crore in the next couple of years.

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