Newstrack

Royal Orchid to establish nationwide footprint by 2010

To double room capacity by 2010

Neeti Mehra - Mumbai

Bangalore-based Royal Orchid Hotels (ROHL) is creating multiple formats to de-risk its business model that focuses on the business hotel segment, while establishing a pan-India presence across the country by 2010.

"We are looking at wholly-owned properties, joint ventures, revenue-sharing models, management contracts and long term leases," said Chender Baljee, chairman and managing director, ROHL, at the launch of the company's tenth property, Royal Orchid Central in Pune, a 115-room business boutique hotel situated next to the domestic airport.

By 2010, the company expects to double its room capacity from its current strength, which is in excess of 800 rooms currently, and will pump in Rs 500 crore for expansion.

The company plans to replicate its signature F&B establishments across the board. "Oriental restaurants will be Ginseng, which is the restaurant at our Bangalore property. Similarly, Pinxx coffee shop and Paparazzi - the rooftop restaurant will be added, while Tiger Trail will focus on Indian cuisine," stated Baljee. Also on the drawing board is a pub, which shall be taken across the brand.

The company had entered into an arrangement with Wyndham Hotels to develop 10 four-star Ramada Hotels at an investment of US$100 million over the next four years. It has upgraded and rebranded an existing property, the Royal Orchid Harsha, as the first Ramada Hotel. "We are now looking at management contracts and ownership opportunities," remarked Baljee.

Having recently announced its international foray, it is developing a resort in Dar Es Salaam, Tanzania, expected to open within two years.

The company is developing hotels under the five-star business hotel brand Royal Orchid in Bangalore, which will be the second property in the city; as well as hotels in Jaipur, Delhi, Mumbai and Simla, while the four-star boutique business hotel brand, Royal Orchid Central, will come up in the cities of Hyderabad and Ahmedabad. All the properties will be operational by 2009.