ROHL has charted an aggressive expansion plan to set up a chain of 50 budget hotels across India by 2010 under the brand "Peppermint". For this purpose the company has floated a fully owned subsidiary "AB Holdings" under which the budget hotels will be managed;
Of the 50 locations planned, 11 locations have been tied-up with IRCTC (Arm of Indian Railways). These locations are Chandigarh, Pune, Nagpur, Jodhpur, Bikaner, Tirupati, Bhopal, Agra, New Jalpaiguri (West Bengal), Darjeeling and Jaselmer. Through this tie-up ROHL will get these properties on a 30-year lease for development and running of a budget hotel;
2 other properties have been tied up in Hyderabad & Bangalore respectively. Construction work for the same has begun. The company is in talks with developers and property owners in other major cities for development of these hotels and talks are in advanced stages;
The total project involving development of 50 budget hotels is expected to cost Rs 700 crs. These hotels will have around 90 rooms/hotel. The mode of expansion is expected to be largely based on its current asset-light model of leasing properties instead of owning the same. For development of these hotels the company plans to set-up ventures with local developers. The overall structure is expected to be a mixture of leased, ownership and joint venture based on suitability and feasibility of model for each project.
Disclaimer – The Information on this page is forward looking in nature, is based on publicly available information and is subject to change.
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