Page 17 - HBiz_September_2024

INTERVIEW
HOSPITALITY BIZ SEPTEMBER, 2024 17
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hotel owners who are hospitality management
graduates and desire recognition and
distribution, which we provide. The revenue-
sharing model allows us to take a percentage of
the top line while managing the profit and loss.
This model helps us to scale, as it adds to both
our top line and bottom line.

Q What is the most popular model
among these?
The management contract remains our most
popular model. However, we are looking to
have around 10-15% of future hotels under the
revenue-sharing model to enhance turnover
and profitability. The franchise model is also
gaining traction, but it is less significant in
terms of scale compared to the management
model.

Q Are there any plans for further
property ownership, or is the focus
solely on an asset-light strategy?
We are currently pursuing an asset-light
strategy and are not looking at new Greenfield
projects. Instead, we are investing in expanding
and renovating our existing properties. For
instance, we have recently bought out some
partners at our Goa and Bangalore properties
and are expanding them. Additionally, we are
undertaking renovations at our flagship hotel
in Bangalore.

Q Can you provide insights into the Here, our aim is to seamlessly integrate these completing our brownfield projects within 6
current pipeline of brownfield and
to 18 months, while our greenfield projects are
properties into our portfolio, upgrade them to
greenfield projects for Royal Orchid Hotels? our brand standards, and maximise occupancy estimated to reach completion in 2 to 4 years.
What kind of timelines are you working with and revenue. These acquisitions generally have We remain strategically flexible, adapting our
for these developments? a timeline of 12 to 18 months, depending on timelines based on market conditions and
At Royal Orchid Hotels, we are actively the property’s current status. challenges, ensuring that we optimize resource
pursuing both brownfield and greenfield Our greenfield projects involve entering allocation and maintain our high standards
projects to expand our footprint and enhance new markets in Southeast Asia, the Middle throughout each project.
our portfolio. Our strategy is focused East, and India. In these emerging markets, we
on redeveloping existing properties and are building hotels that align with our luxury Q Could you share the investment details
establishing new ones in key markets, with and lifestyle brands, aiming to create unique, for your ongoing brownfield projects?
carefully planned timelines to ensure swift and high-quality experiences. These projects We are investing around INR 15 crores in
efficient growth. typically take 24 to 36 months, including expanding our Bangalore resort, adding
Our brownfield projects are centered on land acquisition, planning, construction, and 28 wooden cottages. Additionally, we are
urban redevelopment initiatives and strategic obtaining necessary approvals. adding 50 rooms to our Goa property with an
acquisitions in major cities such as Mumbai, Additionally, we are crafting high-end investment of around INR 25 crores. These
Delhi, Bangalore, and Pune. In these key urban resorts in leisure destinations such as Goa, expansions are expected to be completed
areas, we are upgrading properties to meet our Kerala, North India, and select international within this financial year.
brand standards, modernising facilities, and markets. These resorts are designed to blend
adding trend-aligned amenities that appeal to luxury, nature, and culture, offering exclusive Q How do you incorporate sustainability
today’s travellers. Typically, these projects have experiences for discerning travelers. The and environmental consciousness into
timelines of 12 to 24 months, with minimal development timelines for these resorts are your projects?
downtime, depending on the property’s strategically aligned with peak travel seasons, Sustainability is a key focus for us. In our
construction status. usually ranging from 24 to 36 months. larger properties, we have installed solid
We are also focusing on strategic acquisitions Our current pipeline is a dynamic mix of waste composting units and sewage treatment
in high-demand locations, such as popular both brownfield and greenfield projects at plants. We are transitioning to LED lighting,
tourist spots and bustling business districts. various stages of development. We anticipate have minimised the use of plastic bottles, and

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