F & B News

Olive brand of hotels on cards

Tertiary concepts including mall derivative to launch in 2007

Bhisham Mansukhani - Mumbai

Olive is likely to figure prominently as a set of boutique hotels across India in the next few years. Apart from this, its management will also launch tertiary brands, including a mall product, to tap the unrelenting boom.

AD Singh, partner of Olive Bar & Kitchen, told Express Hospitality exclusively that the Olive brand of boutique hotels was on the cards as well as a host of other concepts, including a mall product and deli that would be rolled out in 2007 and beyond. An international foray is also part of the 2007 mandate with the prospect of start-ups in Singapore and Dubai. Singh said the management was also open to the idea of taking over space within hotels.

The company is busy raising funds through private placements with the likelihood of an IPO in the distant future for its Olive brand of hotels. "The hotel experience is parallel to the kind of profile we've created with the restaurant. So in a way, this move indicates that the brand is growing into something more pervasive throughout hospitality. It will perhaps have a resort focus initially, but major metros could also figure. Ideally, we would like to take land on lease and build and manage the hotels," Singh reveals.

The management spent most of 2006 strategising for the next year so in a way 2007 is expected to witness the launch of many concepts. The group has also set about raising finance for the same. "We are raising funds keeping the next five years in mind. The goal is to grow about four-fold in the next five years and an IPO could be in the works within the next two years, once we've achieved critical mass. We are looking at creating new brands in similar markets and are currently developing a product for the mall market and other derivatives like a deli. These broad options will allow us to create brands that can be franchised in a way that they appear consistent," Singh expounds.

While he remains non-committal about whether the template of the Olive Bar & Kitchen could be replicated in more metros or even in the ones where it already exists, he says that he foresaw operations in all major metros within the next few years, with no specific time line. "The urbane market has depth for all the up-market products and we believe we are well placed to tap the same," Singh says.

He says that banqueting and outdoor catering were still not high on the priority list, although he still feels passionately about it, adding that hotels were soaking up all the talent within hospitality making staff retention a key issue. At the same time, he says, "We are open to extending good space, our brand and expertise and these could well include hotels." Singh, along with a clutch of partners including Henry Tham, runs three Olive Bar & Kitchen outlets in Mumbai, Delhi and Bangalore.