Sarovar to open two 5-star hotels in Bangalore

Sarovar Hotels and Resorts, a master-franchisee of Minneapolis-based Carlson Hospitality Worldwide brands Park Plaza and Park Inn, plans to launch two new five star hotels in Bangalore, in the next two years. Sarovar already runs a budget hotel in Bangalore under the brand, Hometel.

While one property will be under Park Plaza brand, the other will be Sarovar's own brand. Together, the hotels will add another 326 five star rooms at a cost of around Rs 150 crore, to cater to the ever-increasing demand in the premium segment.

Savannah Sarovar Premiere, coming up in Whitefield is being built at a cost of around Rs 50-55 crore and will have 106 rooms.

According to Sarovar Hotels Executive Director Ajay Bakaya, the Savannah Premiere is likely to be opened in October 2007.

According to him, this will be managed by Sarovar Group while the real estate and building expenses will be borne by another developer.

"The promoters of the hotel, Savannah Hotels, are the same as that of Hotel Marine Plaza which we manage in Mumbai," Bakaya said.

"We have secured a long-term management and marketing contract for the Bangalore property as well," he added.

The second project, Park Plaza Bangalore will be built at a cost of Rs 100 crore. The hotel will be built by Bangalore-based Ferns Builders and Developers, and managed by Sarovar. Located on the Outer Ring Road, the five star property will have 220 rooms. It is expected to be ready by December 2008.

Apart from these two projects, Sarovar is looking for more opportunities to expand their presence in the city.

"Our very first budget hotel in India, located in Whitefield has achieved average occupancy of nearly 80 per cent. However we believe that there is under-supply of rooms in the 3 and 4-star segments. We will explore options in Bangalore as and when required," he added.

Sarovar Hotels and Resorts currently manages 35 hotels and resorts in the 3, 4 and 5 star categories under the Sarovar Premiere, Sarovar Portico, Park Plaza and Park Inn brands apart from Hometel, its budget chain.

Global funds Bessemer Venture Partners Trust and New Vernon Private Equity Ltd have invested in the company.

The approximate annual turnover of the firm for 2006-07 was Rs 40 crore.