Breggruen Hotels to launch its first Greenfield budget hotel in Thiruvananthapuram in August 2009
Berggruen Hotels is set to launch its first Greenfield budget hotel in Thiruvananthapuram under the ‘Keys’ brand in August 2009. The 101 room property will be primarily targeted at corporates. However, the hotel chain expects to attract leisure clientele visiting the city. “We are bullish about the scenario at Thiruvananthapuram. Our property will be positioned at par with the Muthoot Plaza and the Fortune South Park,” said Sanjay Sethi, Managing Director, Berggruen Hotels. The hotel chain is using the hub and spoke model for growth in the country and is constantly in the process of identifying new locations for the same. To fuel its growth, the group has also increased its investment in the country by USD 40 million. This year, the company will launch seven hotels which will have a total inventory of about 750 rooms. It will add more 1,000 rooms in 2010.
The company has recently signed properties under the management contract in Hyderabad and Jaipur. While the property taken up in Hyderabad is a Brownfield project currently operating with 45 rooms, the hotel will undergo an up gradation. It is expected to be fully operational with about 120 rooms by mid-2010. The property in Jaipur is also expected to be operational at the same time. The companys first property; a Brownfield project is operational in Lonavala, Maharashtra. While we have significantly covered South India with properties under development in Bengaluru, Vishakapatnam and Chennai, we now aim to focus on the other regions in the country, added Sethi.
Furthermore, the company is close to finalising Greenfield projects in Kolkata, Bhubaneshwar, Hyderabad, Surat, Goa and Greater Noida and a Brownfield project in Ahmedabad. The company’s focus is on developing Greenfield projects in the country so as to develop its own assets while it will also consider the inorganic mode of growth through management contracts. The fresh investment of USD 40 million will only consist of equity. There will be an additional component of debt that the company will add to fund the growth. The hotel chain is also debating on means to bring in investments and may consider bringing in a partner in the company.
Source : travelbizmonitor.com