After Gurgaon, the Vatika Group is now keen on spreading its hospitality division network to Jaipur and Bangalore. The group, which is looking at introducing three more properties, is planning to invest Rs 310 crore in a five-star and a three-star hotel being built over a 20-acre complex at Jaipur. The Bangalore property would be a five-star deluxe hotel.
Speaking exclusively to Express Hotelier & Caterer, Pankaj Pal, vice-president - marketing, Vatika Group, confirmed, “The group always had plans to add hotels to its portfolio. Now with the industry growing phenomenally the management felt it to be the right time for expansion. We are entering Rajasthan as a real estate developer so it was a logical move to venture into the hospitality segment there. Construction of the two hotels in Jaipur is likely to start by early next year and they are scheduled to open by 2008 end. As regards Bangalore, we are in the initial stages and looking at entering into a joint venture. More concrete plans will be finalised later.”
Construction of the group’s flagship hotel in Gurgaon, will commence by the end of June 2005. The group is planning to invest Rs 300 crore on this five-star deluxe property that will open by mid-2007. Highlighting on the business aspect, Pal said, â??Gurgaon is the most rapidly developing colonnade. We are expecting the hotel to achieve an average occupancy of 75 per cent during its first year of operations. According to the feasibility study of HVS International, the ARR of this 305-room property for 2007-08 is expected to be Rs 6,800.” The group has entered into a management contract with an American chain of deluxe hotels for this venture. Pal refrained from divulging names as it is a Non-Disclosure Agreement (NDA) between the two parties.
