Anil Madhok, MD, Sarovar Hotels speaks about
his budget brand Hometel
What
prompted Sarovar Park Plaza(SPP) to commence operations in the five metros with
Hometel brand ?
The destinations have a huge demand for no frills, basic, comfortable hygienic
hotels that are competitively pricing. Market research reveals that category
two metros and cities have a huge influx of mid market and budget travellers
in need of quality and yet very reasonable hospitality accommodations. We are
hoping to fill this gap.
How does the company aim to market the brand and who is
your target clientele?
Our marketing strategies would encompass diverse means, some of which include
extensive access through electronic booking on the net and targeting the travel
trade for foreign groups looking for budget accommodation. We are targeting
the mid market and budget business and leisure travellers.
What are the future plans with regard to Hometel?
Hometel is poised for more expansions following the launch of the first property
in Bangalore in November 2005. Properties have been planned in Mumbai, Pune,
Gurgaon, Hyderabad and Jaipur. We hope to launch 50 Hometels in India in the
next seven to ten years.
What percentage of overall revenue do you expect the Hometel
brand to contribute?
In time to come, Hometel could be the main contributor to the Group's revenue,
as we expect a large number of these to be owned by us.
Are there any plans to introduce other brands that have
still not been introduced in the Indian market?
The company is in the midst of a major re-branding exercise. We will also be
launching new domestic brands which would encompass the three, four and five
star categories. The Sarovar Premier will be categorised as a five star hotel
while Sarovar Portico will be categorised as three and four star.
Is SPP planning to enter the North East region? Do you
see a potential in that sector?
We already have a presence in Kolkata, while Durgapur, Gangtok and Ranchi will
soon be part of the network. There is a tremendous potential as the region continues
to remain untapped. The region is poised for further development.
What potential do you visualise in the regions on the outskirts
of Mumbai, namely Thane, Navi Mumbai etc.?
Thane and Navi Mumbai are on the brink of tremendous growth
along the lines of Noida and Gurgaon. As Mumbai becomes more and more sated,
the growth spills onto these regions. Moreover, the rapidly growing industries
such as pharma and IT are all becoming concentrated in these regions.
