Sarovar Hotels to add 50 hotels in the next 5 years

Sarovar Hotels & Resorts is embarking on an ambitious plan to launch 70 new hotels within the next five years across various locations in India and international markets, thereby adding 5,000 rooms to its existing portfolio. Ajay K Bakaya, the managing director, shared these expansion goals. Currently operating 105 hotels with approximately 7,500 rooms, the company aims to recruit 6,000 individuals in the next half-decade to support its growth.

The chain recently inaugurated new properties in Agra, Tirupati, Bhopal, Dalhousie, Bengaluru, Pavagadh, and Shravasti this year. Bakaya anticipates a turnover of slightly over Rs 1,500 crore for the year, marking a 12% year-on-year increase. Sarovar Hotels & Resorts follows the January-December calendar year cycle.

Bakaya emphasized the positive business environment, attributing it to significant infrastructure developments such as road and airport upgrades. He highlighted the growing maturity of smaller markets and identified the wedding segment as a robust revenue source for numerous hotels at present. Anticipating continued growth, Bakaya foresees sustained high demand outpacing the relatively slower pace of hotel supply expansion in India, considering the time-consuming nature of hotel construction.

The chain's upcoming projects include a company-owned hotel in Chennai slated to open in March 2025, with an estimated investment of around Rs 118 crore.

Regarding international presence, Bakaya mentioned the chain's reduced footprint in Africa due to the pandemic, with three operational hotels currently one in Lusaka and two in Nairobi. Sarovar Hotels & Resorts plans to open hotels in Kampala (Uganda) and Hargeisa (Somaliland) in the coming year. Additionally, apart from Africa, the company expresses keen interest in expanding its presence in Nepal.
 

News by Rahul Yelligetti