Sarovar Hotels to set up two properties in Assam at Rs 75 cr

Sarovar Hotels and Resorts, one of the leaders in the mid-market hotel segment in the country, is all set to venture into North-East with its plans to open two properties in Guwahati and Tezpur, in Assam.

The one in Guwahati would be under its ‘Hometel’ brand and would be a no-frill economy hotel with 70 rooms. The one in Tezpur would be under its ‘Portico’ brand and would be a mid-market 3 star hotel with 50 rooms.

Anil Madhok, managing director of Sarovar Hotels and Resorts, told Business Standard that the company had acquired land for both the properties and was waiting for “approvals to come to start work.”

“North-East is a growing market and is witnessing an escalating demand for quality accommodation. Sarovar Hotels and Resorts aims to fill this gap and offers hospitality at various price points that provide unmatched services and premium accommodation for both business and leisure travellers,” said Madhok.

He said the company was coming up with a 120-room 5-star hotel in Bhubneswar and is scheduled to be completed by December 2012.

The two hotels in Guwahati and Tezpur would be commissioned by January 2011 and May 2011 respectively. Though Madhok did not give any break-up of the investments, he said the total investment in the two hotels would be Rs 75 crore.  

Recently, the foundation stone of the first 5-star Taj Hotel by Tatas was laid by Assam chief minister Tarun Gogoi in the presence of Ratan Tata, chairman of Tata Sons. Now, the decision of Sarovar Group to invest in Assam would further cheer up the tourism sector of the state and the region.

Apart from 42 operational hotels, another 30 Sarovar hotels are at various stages of development. "By end-2010, Sarovar targets to be a 50-hotel chain and by 2020, aims to achieve a 100-hotel portfolio," said Madhok. The company is building assets by way of company-owned hotels and is venturing into serviced apartments.

“After a sombre 2009, industry is now picking strength and showing positive signs. The mid-market segment continues to grow in India with maximum growth in the budget and no-frill segment across metros, non-metros and smaller cities,” said Madhok.