Regenta & Royal Orchid Hotels (RROH), a mid-tier hospitality firm, is planning to add about 500 hotel rooms across nine hotels. This will be achieved over the next six months using the management contract route.
The expansion will take RROH’s overall portfolio to a little more than 4,000 rooms and 60 hotels in 40-odd locations.
The hospitality firm also eyes to double the number of existing hotels to more than 100 with room inventory growing in the range of 60% to 70% over the next two to three years.
Chander K Baljee, Managing Director, RROH, said, “The immediate additions are being made primarily through management contracts. However, the next phase of growth will see us use a combination of franchise, management, revenue sharing and leasing options to breach the figure of 100 hotels by 2022. While the number of hotels will double, the increase in guest rooms will not be in the same proportion because guestroom inventory may not be uniform across all the new hotels.”
“We are planning to add a few hotels on lease in some matured markets. If an opportunity comes by we will take this approach select markets that are crucial to our business. We are scouting around, but are not in a hurry to do so. Hotel asset owners are also warming up to the idea of franchising and we will adopt this route to expand. Of the next about 50 hotels, 30 will be through franchisee route, 20 management contracts and about five through leasehold agreements,” he further added.
