Sayaji Hotels to invest Rs 100 cr for expansion

Vadodara-based Sayaji Hotels Ltd is planning to invest Rs 100 crore for the expansion across India. The company will expand in Bangalore, Chennai, Gurgaon to tap Auto, IT and Engineering industries.

Also, Sayaji’s restaurant business of Barbeque Nation will be crossing Rs 100 crore benchmark in the current year. Barbeque Nation to expand from 18 units to 33 units by end of current year in 7 cities. Sayaji, Pune is completing their two successful years in the city. On this occasion, they announced their plans to expand with a sports and cultural club, restaurant mall, convention and conference facilities, marriage facilities and serviced apartments in Pune.

Speaking on this, Sajid Dhanani, MD, Sayaji Hotels Ltd said, "This expansion will be completed by September, 2012 with a total investment of close to Rs 100 crore. Last financial year we closed at close to 80 per cent occupancy. We should do close to 85 per cent occupancy in the coming months." "Demand for hotels and restaurants is increasing at a very good growth rate in Pune. My estimate would be at 22 per cent as far as hotel business is concerned, though supply of rooms in the last 3 years has increased considerably in Pune. Restaurant business is growing far more rapidly," he added. The new Barbeque Nation restaurants will largely be opened in seven cities like Mumbai, Delhi, Chennai, Bengalore, Hyderabad, Kolkata and Pune. Sayaji hotels further plans to leverage the brand image it has created in Pune by expanding in other locations like Bangalore, Chennai, Gurgaon wherein the large portion of the customers are common, coming from Auto, IT and Engineering industries.

Sayaji Hotels turnover was around Rs 190 crore as a group for the financial year 2010-11, There expected turnover for 2011 – 2012 is estimated to be Rs 260 crores. Sayaji was launched in Pune in April, 2009 as a business hotel concept with 72 rooms. The group claims that in the last financial year, the hotel occupancy was close to 80 per cent and in the current year it is expected to 85 per cent.