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Oct, 30 2013

Sarovar to enter Motel Segment

Sarovar Hotels to enter highway motels segment under a new brand.

Sarovar Hotels plans to enter the Bed and Breakfast segment under a new brand on highways across the country. The highway motels concept which is already in US, Sarovar expects to tap into this segment, with a format cheaper than its existing budget brandHometel.

Mr. Anil Madhok, MD, Sarovar Hotels, said, “There is still no big hotel chain brand doing bed and breakfast as the highways have yet to get developed in our country. As this segment is growing and has huge potential, we are interested in entering it in the future.”

With average room rates (ARR) pegged lower than the budget segment, rentals for such motel rooms on highways are expected to hover around Rs 1,000 a day. The hotel expects to set up its motels as green field projects along highways connecting Mumbai, Delhi and Chennai offering basic services such as vending machines and continental breakfast. Initially, the hotels manager ment company will sett up its own motels along highways, but later, seek partners to expand the format.

“We expect players with interest in the hospitality business to come forward as partners. Internal funds will be used initially, but we expect more investors to come forward in building such motels while we design and run it,” added Mr. Madhok.

Mr. Homi Aibara, Partner, Mahajan & Aibara, a hotel consultancy firm, said “Bed & Breakfast is still an unregulated and informal segment in India. While there are a couple of players in the South, the West and North are still untapped markets.”

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