TajGVK planning to enter budget hotel segment

TajGVK Hotels & Resorts Limited is exploring the possibility of entering the value for money segment through the ‘Ginger’ brand in Andhra Pradesh. It is also in the process of acquiring land in Bangalore for hotel projects.

The Hyderabad-based hospitality company recorded a 67.5 per cent fall in its net profit at Rs 4.89 crore for the quarter ended June 2009, compared with a profit of Rs 15.08 crore posted in the corresponding quarter last year. Its turnover during the same period declined 18.6 per cent to Rs 47.79 crore from Rs 58.74 crore.

The company stated that its Rs 80-crore five-star hotel project at Begumpet in the city, comprising 189 rooms, is expected to be operational by 2010. It is also expanding its flagship Taj Krishna hotel at a cost of Rs 75 crore. The expansion plan includes construction of 43 apartments, a 7,000 sft spa and creation of additional car parking facility.

TajGVK’s newly launched Taj Mount Road hotel in Chennai has achieved 30 per cent occupancy rate and its other hotels in Hyderabad and Chandigarh have recorded 58 per cent occupancy during the first quarter of the current financial year.