Hyderabad-based TajGVK Hotels and Resorts Limited (THRL), formed through an alliance between city-based GVK group and Tata group’s Indian Hotels Company Limited, is looking at opening hotels in Tier-II and Tier-III cities in Andhra Pradesh.
“We are open to opportunities in districts and smaller cities like Rajahmundry, Visakhapatnam and Vijayawada. If we get any opportunity, we will expand our portfolio,” said G Indira K Reddy, managing director, TajGVK Hotels.
The company currently owns five properties in the state – Taj Krishna, Taj Banjara, Taj Deccan, Taj Falaknuma and Vivanta by Taj.
Citing high land prices in districts as a major hurdle, Reddy said, “Land prices in the districts are not viable. In some districts, including Nellore, land prices are higher than Hyderabad.”
The company is also looking at opening three-four Ginger hotels in Hyderabad. “The first Ginger hotel is under construction and will be launched this year. We expect to open another three-four Ginger hotels in the city,” she said.
... Q3 net dips 53 %
TajGVK Hotels and Resorts Limited reported a 52.78 per cent dip in net profit to Rs 6.10 crore for the quarter ended Dec 31, 2011, as compared with Rs 12.92 crore in the corresponding quarter last year. Total income stood at Rs 66.32 crore, as against Rs 70.24 crore, a decline of 5.58 per cent.