Kolkata, November 23, 2015: The Lalit Suri Hospitality Group, an enterprise of Bharat Hotels, is looking to make operational its first overseas property – in London – by September next year.
According to Jyotsna Suri, Chairman and Managing Director of the group and Bharat Hotels, the boutique property, with 70 keys (rooms), is being developed at an approximate cost of £40-45 million (₹403-453 crore).
The group had earlier acquired a heritage building – a school – at St Olave’s, near Tower Bridge, for £15 million, sources said.
“The London property will be our first overseas property. I am going to open it in September next year (2016). Investments right now are fluid and it will be between £40-45 million,” she told BusinessLine during an interview.
Suri, who was in the city to attend the National Executive Committee meeting of Federation of Indian Chambers of Commerce and Industry (FICCI), admitted that the London project has over-shot its budget. “If I have to do a greenfield project, I know the budget. But when it’s a restoration project, you cannot budget it. It’s an open-ended situation,” she explained.
Consolidation mode
According to the CMD, the group, which is currently in a consolidation mode, is planning to make operational its greenfield property in Ahmedabad (Gujarat) in 2017. The property will have around 250 rooms.
“We are not doing any new developments. Ahmedabad property will be operational a year after the London one,” she added.
Apart from these two, the group is also working on making operational the “Victorian” wing of the iconic Great Eastern hotel in Kolkata. The wing will have 40-odd rooms and two restaurants. Rest of the hotel was made operational in phases since November 2013.
Suri did not reveal the investments she has made in restoring this heritage property (Great Eastern) for which the group had bid in 2005. At present, Bharat Hotels – through “THE LALIT” brand – has 11 operational luxury properties in India. Its existing room capacity stands at 3,500 keys.
Mid-market segment
The group is plans to make a foray into the mid-market segment once the London and Ahmedabad properties are commissioned. The mid-market segment will target the ‘traveller segment’, sources pointed out. “The entry will happen at the right time,” she said.
Speaking on managing properties under “The Lalit” brand, Suri said she had no intention to go in for an asset light model. At present, all its properties are “owned” by the group. “I am not ready to take on management. The next level, post consolidation, could be managed properties,” the CMD said. – ABHISHEK LAW, BusinessLine
Corporate Comm India(CCI Newswire)
