‘Eyeing The Mid-Market Segment’

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.