Newstrack

Berggruen forays into the upscale segment

Plans to develop 8-10 upscale properties

Dinkar Farwaha - Mumbai

The enormous gap between the demand and supply of upscale hotels in the country appears to be narrowing. Berggruen Hotels is the latest one to announce plans for the much untapped four-star segment, after chains like Lemon Tree, Dawnay, Day and Kamat Hotels (with its newly-launched brand VITS) did the same.

Berggruen Hotels, which launched its Keys brand of hotels in the budget segment, is set to go for a brand extension and enter the upscale segment. Says Sanjay Sethi, its managing director and CEO, "There is a huge potential for both budget and upscale properties in the country. Considering this, we have decided to go for a brand extension of Keys and enter the upscale segment." The full-service chain, according to Sethi, will cater to travellers who are looking for a comfortable stay at wallet-friendly rates.

"We are on the verge of completing land acquisitions in Goa, Delhi and Hyderabad to build upscale properties," Sethi added. The group plans to open eight to ten such properties in tier I and tier II cities in the next three to four years.