No announcement yet.

Sarovar Hotels Eyes Serviced Apartment Mkt


Sarovar Hotels Eyes Serviced Apartment Mkt

Last updated: May 3 2007
0 | Posts
1863 | Views
  • Time
  • Show
Clear All
new posts

  • Sarovar Hotels Eyes Serviced Apartment Mkt

    Mumbai-based multi-brand hospitality chain Sarovar Hotels is looking at entering the serviced apartments market through the management contract route.

    The company is in talks with real estate players for operating serviced apartments in Bangalore, Chennai and Gurgaon. “Currently, the plans are in the evaluation stage but we are definitely entering the serviced apartments segment as soon as we get a good deal,” Ajay Bakaya, ED of Sarovar Hotels, told ET.

    Mr Bakaya added, “We could operate these serviced apartments under any of our four brands, excluding Hometel. And the room rents would be a on par with a three star hotel accommodation.” Apart from its budget hotel brand Hometel, Sarovar manages properties under Premier, Portico, Park Inn and Park Plaza brands.

    In the south, Bangalore, Hyderabad and Chennai are major markets for serviced apartments. Similarly, many serviced apartments are coming up in Gurgaon and Noida due to increasing demand from MNCs. Though there is no data available to estimate the growth of serviced apartments market in India, the action is in this space is heating up with entry of international hospitality majors like Hilton International and Ascott.

    Currently, hospitality majors like the Taj and Grand Hyatt operate upscale serviced apartments in Mumbai. Bangalore-based Royal Orchid, which operates a serviced apartment in the city, plans to launch another one in Pune. Real estate groups like Raheja and Brigade also have a presence in this segment.

    Meanwhile Sarovar Hotels plans to set up seven Hometels’ across Chennai, Hyderabad, Mumbai, Baddi (Himachal Pradesh) and Chandigarh with an investment of over Rs 300 crore.
Have any questions or thoughts about this?