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Newstrack
Royal Orchid to add 15 hotels by 2007
Savio Rodrigues - Mumbai
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Chander K Baljee
CMD,
Royal Orchid Hotels
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The Chander K Baljee promoted Royal Orchid Hotels is set to
add 15 hotels to its existing portfolio of seven. Most of these hotels will
be added through the management contract route, while expansions in key metro
cities will be mooted through ownership, CMD Chander K Baljee told Express
Hospitality in an exclusive on the occasion of a brokers’ meet on the
eve of announcing its maiden IPO.
"We are looking at 15 properties in several locations including Mumbai,
Jaipur, Kolhapur, Agra and Ahmedabad. This phase of expansion will take our
total strength to 22 properties by 2007. While most of these hotels will be
run on a management contract, at least 20 per cent of the hotels will be owned
by Royal Orchid. Ownership will be concentrated in key cities, namely Mumbai
where we are looking at setting up two hotels in the north of the city,”
Baljee stated. Apart from the seven hotels it currently runs, including Central
Park - a three-star hotel, and Harsha, a luxury resort, the company also operates
a hotel management institute in Bangalore, called Presidency. Royal Orchid posted
a net profit of Rs 130 million in the last fiscal year to March 2005.
"We see good potential in secondary cities and will be aggressively targeting
these cities with our Royal Orchid Central brand, apart from other metros,"
Baljee said. He also didn't rule out an international tie-up, saying that he
would consider one at a later stage once the company had consolidated its brand.
"Once we have consolidated, we would look at acquiring a master franchise
of an international hospitality brand for India," Baljee added.
Serviced apartments could also potentially be on the anvil although he said
that would happen exclusively through the management contract route. Interestingly,
Baljee was the first hotelier to introduce serviced apartments in Bangalore
- an entire floor of 20 serviced apartments at Royal Orchid.
(With inputs from Bhisham Mansukhani)
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