HBI Staff | Hyderabad 
Sarovar Hotels, part of the French Louvre Hotels Group, is charting a strategic shift by tapping into the growing potential of highway hotels and resort-style properties located near major cities. This move comes in response to India’s unprecedented road infrastructure growth, which is creating new demand for accessible and convenient accommodation options for both business and leisure travelers.
Speaking on the development, Ajay K Bakaya, Chairman of Sarovar Hotels, highlighted the opportunity arising from the country’s rapidly expanding road network. “Highway hotels and resort properties within a three-to-four-hour drive from major cities are emerging as high-growth segments. This aligns with the transformative road connectivity projects currently underway,” Bakaya said.
Bakaya noted that the construction of approximately 10,000 kilometers of national highways annually is significantly improving connectivity, enabling seamless travel and unlocking new markets for hospitality businesses. “The development of highways is not just connecting places but also creating a surge in demand for highway hotels and resorts near urban centers,” he added.
Currently, Sarovar operates 135 hotels across 85 locations with 9,000 keys, primarily under management contracts. While only a small portion of these are highway and resort properties, the group plans to expand its portfolio to 150 hotels with 12,000 keys by 2025, backed by 80 projects in the pipeline. This includes adding 15-20 new hotels annually, although only a limited number will focus on the highway and resort segments.
While 70% of Sarovar’s current revenue comes from corporate travelers, Bakaya anticipates this share may reduce to around 65% as highway hotels and resorts contribute more to the company’s growth in the coming years. Sarovar Hotels has been recording a **compound annual growth rate (CAGR) of 15%**, with 9% attributed to existing properties and 6% from new additions.
Despite increasing competition in urban markets, Sarovar is optimistic about its trajectory. “Demand continues to outpace supply, and we foresee sustained strong growth in the near future,” Bakaya said.
Bakaya also underscored the need for granting the hospitality sector **infrastructure status** in the upcoming budget. This change would allow hotels to access long-term credit lines of up to 15 years, compared to the current 10-year terms, enabling significant investment in emerging segments such as highway hotels and resorts.
To support the broader industry, Bakaya called for increased efforts to attract international tourists to India. He believes this would complement Sarovar’s expansion strategy, driving growth across both urban and leisure markets.
Source: PTI
