Newstrack

Sayaji to inject Rs 275 cr in hotel, restaurant business

Shweta Bhanot - Mumbai

Indore-based Sayaji Hotels (SHL) plans to invest around Rs 275 crore in restaurants and hotels by 2009. That said, however, the company plans to shift its focus more on the food and beverages business than the traditional hotel business.

The company plans to modify the revenue equation between its hotels and restaurants from the existing 85:15 per cent to a 30:70 per cent model, respectively, in the years to come.

"Restaurants involve low investment but high returns," said Sajid Dhanani, promoter and managing director, Sayaji Hotels. In line with this, SHL has launched a new chain called Buffet Junction which will look at the concept of retail food business on a contract basis at various places like malls and hotels.

To start with, the company has entered into a contract with the GenNext 'Smart Basics' hotel - Ginger- of the Indian Hotels Company (IHCL) for running the food business (breakfast, lunch and dinner) at its Baroda hotel.

"It is a lease-cum-revenue sharing agreement," Dhanani said, adding that the company is open to all options and is also planning on creating a pan-India presence. As for plans of taking popular chain, Barbeque Nation abroad, Dhanani said that the plans were on track and by January a desicion would be taken.

"We will open in London first in a couple of months," he said. The company may also look at destinations in Asia, including Kuala Lumpur among others, with an aim to make the brand popular globally. "We will be looking at a pan-Asian presence with Barbeque Nation also," he added.

Currently, there are four Barbeque Nation restaurants in the country - at Bangalore, Mumbai, Hyderabad and Delhi. Thirteen more will come up by January 2008 at locations that include Chennai, Chandigarh and Pune, among others.

By 2010, SHL plans to have 100-odd Barbeque Nation outlets. On the hotel front SHL has one hotel at Indore and Baroda. A 250-room hotel is being slated to come up at Pune. The site is currently under construction and its expected to be completed by December 2008.

The funds for the Pune hotel project are already being raised through preferential allotment, FCCB and debt.