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| Encore Hotels to invest Rs 100 cr in hospitality |
| Vinay Umarji / Mumbai/ Ahmedabad May 21, 2009, 00:52 IST |
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Relying on an improved economy by later part of financial year 2009-10, Encore Hotels Private Limited is planning to invest around Rs 100 crore for expanding its hospitality operations. While on the hotel side, the company plans to add 320 rooms to the existing 420, on the restaurants side Encore is looking at taking up the total number to 100 outlets from current 32.
Encore runs various formats like Rajdhani, Zest and Revival in quick service and fine dining restaurants category, and Citrus in the business hotel category.
"Most of our restaurants are coming up inside and around malls, apart from standalones. We believe the economy will improve in later part of the current fiscal and consumer spending is likely to increase. Given such a scenario, we are looking at simultaneous expansion in all our formats. We would be investing around Rs 100 crore overall for the expansion plans," said B Ajikumar Nair, general manager (corporate) - operations of Encore Hotels Private Limited, hinting that the company will fund expansion through internal accruals.
Currently, Encore is on an expansion spree for its Khandani quick service restaurant format. "Atleast 10 of such restaurants are in the pipeline already. We intend to manage 75 per cent of them on our own and give out the rest to franchisees," said Nair.
In Gujarat itself, where the company opened its second Rajdhani restaurant, Encore is looking at rolling out 4 more such outlets in cities like Surat and Gandhinagar. Apart from that, Encore also plans to roll out restaurants in overseas market. While it has opened a Rajdhani restaurant in Dubai, the company is exploring other markets like Oman and Kuwait, said Nair.
Ideally, a Khandani restaurants spans around an area of 2,300 sq ft with a seating capacity of 72-75. "While a restaurant in mall costs us around Rs 65 lakh, a standalone one is set up for Rs 75 lakhs," added Nair.
So far, Encore has set up Rajdhani restaurants in cities like Delhi, Gurgaon, Noida, Indore, Nagpur, Jaipur, Mumbai, Pune, Goa, Hyderabad and Bangalore, said Nair.
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