Sarovar's Grand Expansion Plans: 70 new hotels, 5,000 rooms, and 6,000 jobs in 5 years

Sarovar Hotels & Resorts is all set to launch 70 new hotels in the next five years in India and some key international markets, adding about 5,000 rooms to its portfolio. It also plans to hire 6,000 people to fulfill the expansion requirements. The company currently has about 105 hotels totaling about 7,500 keys. The chain opened new hotels in Agra, Tirupati, Bhopal, Dalhousie, Bengaluru, Pavagadh and Shravasti this year. The 45 keys Grand Continent Hosur in Bengaluru opened this month and the Grand Continent Manyata Tech Park in Bengaluru is likely to open next month. Last month, Sarovar opened the 62-room Hotel Golden Tulip in Bhopal, marking the 11th Golden Tulip Hotel in the Indian subcontinent. The four-star Golden Tulip brand is a strong brand managed by Sarovar which competes with Courtyard By Marriott and Four Points by Sheraton in India. Furthermore, the company has signed its first Golden Tulip hotel in Bhairahawa, which is scheduled to open in 2025. The Royal Tulip Sauraha Chitwan and the Sarovar Portico Birgunj are slated to open next year. The chain’s pipeline includes a company-owned hotel in Chennai, entailing an outlay of Rs 118 crore. It is set to open in March 2025. About 80% of the chain’s pipeline will be managed, while 20% will be franchised. Sarovar Hotels and Resorts is part of Paris-based hospitality firm Groupe Du Louvre. Louvre had bought a majority stake in Sarovar Hotels in India in 2017. Sarovar also runs the three-star Hometel brand which has a minimum staffing ratio and so is a very successful brand for the company. It is also building Louvre hotel brands like Campanile in cities like Chennai. Ajay K Bakaya, Managing Director of Sarovar hotels, stated that the turnover for Sarovar was expected to be over Rs.1,500 crore this year. The turnover has been increasing by 12% year on year. He attributed this growth in revenue to the upgradation of the infrastructure around like roads, airports, etc. which helps the hotel business. The smaller markets are also seeing increased activity. At present, the wedding market is seen as the highest source of revenue for most hotels with a major boost in demand. Apart from that, international travel is also picking up. All of this is seen as a positive sign along with the Average Room Rates (ARR) being where they are currently. A recent CARE Ratings report suggested that despite the possibility of inflation putting pressure on the growth rate in FY24, the ARR has already recovered above the pre-Covid level indexed at 105-107 when compared to FY19. Sarovar’s expansion plans are in line with these strong fundamentals. Bakaya acknowledges that expansion of hotels and keys is necessary now because the demand would soon outgrow supply and building hotels takes time. On the international front, in Africa, Sarovar has three hotels - one in Lusaka, Zambia and two in Nairobi. The company plans to open hotels in Kampala, Uganda and Hargeisa, Somaliland next year. The next place of interest for Sarovar is to build hotels in Nepal.

Next (MMRDA plans INR 700 crore elevated road project in Kalyan to ease commute)

Sarovar's Grand Expansion Plans: 70 new hotels, 5,000 rooms, and 6,000 jobs in 5 years

This Month

Overview

Explore

Join Us