Newstrack

Smaller hotels begin ancillary operations to fund expansion

Restaurants, outsourced services, gourmet solutions seen as money churners

Sanjeev Bhar - New Delhi

While the big hospitality groups take on joint ventures and debt financing as a natural course for growth, the smaller hotel groups are looking at ancillary businesses that can branch out as a sustained business proposition and support their mainstream business ambitions in the long run. These ancillary operations are less capital-intensive like fine-dine restaurants, standalone units and even outsourced services.

One such chain is Indore-based Sayaji Hotel which is expanding its restaurant chain - Barbeque Nation - throughout India. Pravir Hazra, director (Operations) of the group, says, "We are taking the restaurant concept based on barbequed food items ahead owing to the positive response from our existing six restaurants. We are planning to open 100 outlets in the next two years and would be financing the project internally."

The company is also looking to expand its hotel chain by introducing an up-market hotel brand. "We are going to come up with a 400-room hotel in Hinjewadi, Pune which will initially open with 250 rooms this October. Within a few months, rest of the rooms will also be operational," Hazra said. For now the restaurant business has taken priority with the company planning to open six Barbeque Nation restaurants in Delhi, Pune, Mumbai, Hyderabad, Chennai and Kolkata shortly. The capacity of the outlets would range from 80-100 pax.

Similarly, Mapple group is brewing its ambition of expanding its Blue Note Café. Upendra Singh Jamwal, its VP (business development & operations), remarks, "Taking on a different venture is not necessarily to sustain in the hotel business. It is a natural progression where expansion of business is bound to happen. It should be seen as an opportunity to expand the brand's footprint in the country." At present, there is a defined plan to take the café concept to all parts of the country and to promote it without any outside participation.

The group also recently won the bid as the hospitality partner for Golden Chariot - Karnataka's luxury train. The group has also ventured into corporate dining. "Corporate Gourmet Solutions was launched for high value contracts from corporate houses. We are presently operating in Bangalore and looking at establishing our brand in Gurgaon and other IT hubs," informed Jamwal.