JOIN USRoots Corporation, a subsidiary of Indian Hotels Company, that runs Ginger Hotels, expects to close fiscal 2013 with 9 per cent growth in revenues, backed by 6 per cent growth in occupancy rates on a year-on-year basis, and is also looking at acquisitions.
The MD & CEO of Roots Corporation, P K Mohankumar, told Deccan Herald, “The growth has been primarily driven by 15 of our properties where the occupancy rate is above 70 per cent. Also, the market has absorbed the increase (in the number of rooms this fiscal) swiftly. Last year, there were about 700 million domestic travellers, it augurs well for our business.”
The company added about 400 rooms this fiscal, with hotels in Chennai, Mumbai and Bangalore. These, he said, are driving the company’s revenues. The average room revenue across the board is about Rs 1,600 for this year and the company is hopeful of 9 per cent revenue growth over last year, when its revenues stood at Rs 89 crore.
Mohankumar said that the mid-market segment in the hospitality sector is gaining
increasing acceptance. “A lot of guests prefer the value proposition offered by our hotels in the price point of Rs 1,500 to Rs 2,000 (per room per day).
While four of the 27 hotels are run on management contract basis, the rest operate on either own and operate, or leased property. While he did hint at acquisitions, he did not elaborate. “Opportunities do exist and we are looking at acquisitions. We are exploring all avenues of growth.” The company could be looking at acquiring family-owned properties.
The company will witness exponential growth in the coming years, Mohankumar added.