As the Indian hospitality sector evolves into growth mode, Sarovar Hotels has been in growth mode. hoping to expand to 150 hotels in over 90 destinations by the end of 2025. Voyager’s World caught up with Ajay Bakaya, Chairman of Sarovar Hotels, on the sidelines of the HICSA convention in Mumbai.
How has Sarovar evolved since the opening of the first Sarovar to now, after being part of the Louvre group?
We have been in the business for almost 30 years. 30 years back, we were new kids on the block, and India was not moving ahead. I think it has now really taken off in the last two years. And I see that continuing for an additional course of time, with enhanced infrastructure coming up across the country. 2023 was a great year for us, when we opened 27 hotels. This year, we are targeting 16, of which five have already opened for business.
Are you primarily focused on greenfield projects? How aggressively are you pursuing properties abroad?
70% of our projects are currently greenfield. The biggest market for a brand such as ours is in the tier 3, tier 2, and non-tier cities here in India. India is currently in a sweet spot with investments only growing. We have three properties in Kenya and Zambia, and have now signed one in Somaliland. Somaliland is an interesting country, which, since breaking away from Somalia, is now a safe and growing destination.
We have also signed a property with 300 rooms in Nepal with a new brand, ‘Royal Tulip.’ With a 22,000-square-foot meeting space, this will be Nepal’s biggest hotel with tremendous opportunities for MICE. We should be having 6 properties in Nepal soon. We should have three Royal Tulips in Nepal, with two in Kathmandu and one in Chitwan.
Sarovar will still be a management-only brand, or will you also look at a franchising-only route? How have owner expectations changed over the years?
Golden Tulip is offered on a franchise model, but overall, Sarovar will be a ‘management-driven model.’ Having many offerings messes with the brand and diminishes our brand value. Sarovar is known for its strong brand application, and we will adhere to that. About owner expectations, the owner now has more to choose from. Sarovar brings in exceptional human resources and a robust reservation and distribution system, which owners rely on us for.
We also provide a complete service for hotel owners right from the blueprint stage. We have a strong team of architects and engineers with tons of experience in building hotels and operating them. We can help build smart hotels at a much lower cost.
Is luxury an option for Sarovar?
Currently, we are a mid-market segment and would not like to go elsewhere. We are focused on our segment and are doing extremely well.
Where do you see the challenges coming in for Sarovar and, by and large, the Indian hospitality industry?
The biggest challenge is finding talent. With the number of hotels opening in India, there is a tremendous shortage of quality manpower. We at Sarovar have introduced a ‘Management Trainee’ program, where we have taken in 19 boys and girls.
Another area of focus is currently enhancing our food and beverage offerings. We have brought in a couple of great chefs to add value to the F&B business in our hotels. Our typical offering has always been bed and breakfast, and most Sarovars have a great dinner buffet. We know good food and would like to create great F&B experiences for our guests during the day as well.