NEW DELHI (INDIA): Berggruen Hotels is aiming to add up to 20 properties under its mid-market segment ‘Keys Hotels’ brand across India by the end of 2018 as part of its aggressive expansion plans in the country.
“We are aiming to add up to 20 Keys hotels by end of 2018. If you can add 8 to 10 good hotels a year it is a good number to look at,” Berggruen Hotels Pvt Ltd CEO Anshu Sarin told .
For the company, Keys Hotels is the mother brand and it has three sub-brand categories — Keys Prima which is at the upper end of mid market segment, Keys Hotels brand, a mid market segment and Keys Lite which is at the lower end of the mid market segment, she added.
Highlighting that the company’s focus would be on the asset light and asset right model, Sarin said, “We are not looking at acquiring at a land parcel or building a property.”
In future, the volume will come through franchise though “our best delivery is when we manage a hotel. Our focus will be on both going forward,” she added.
When asked about the growth potential of hospitality sector in the country, Sarin said: “As per the latest hospitality report that has been launched around the 70 per cent of the future growth is predicted in the mid market segment. So from growth perspective we are spot on.”
As the infrastructure and connectivity grows, the tier II and tier III cities will become more prominent on the map and more opportunities will come from these areas, she added.
On being asked about how the company plans to raise funds for expansion, Sarin said: “So far the money has come from the parent company, it is a mix of debt and equity. But going forward, we will look at both strategic and financial investors to fuel the growth.”
The company currently has 26 hotels across 17 cities in India under three of its sub-brand categories. Out of these seven hotels are owned by the company while 19 are under management contract and franchise models.
Berggruen Hotels was founded in September 2006 to build and operate mid-segment business hotels under the brand ‘Keys Hotels’. It is funded by Berggruen Holdings, a New York headquartered proprietary fund.
Source: Press Trust of India