Sarovar Hotels Shifts Focus to Highway Hospitality Boom

Sarovar Hotels is expanding its focus to highway hotels and resorts near major cities, aligning with infrastructure development. With 80 new projects planned, they aim for over 150 hotels by 2025. The company seeks 'infrastructure status' for better financial terms to support growth.

In a strategic pivot, Sarovar Hotels is capitalizing on India's growing road network by focusing on highway hotels and resorts near major urban centers. This expansion, aligned with ongoing infrastructure development, aims to meet the increasing demand for accessible accommodation options, according to Sarovar Hotels Chairman Ajay K Bakaya.

Currently involved in over 80 new projects, Sarovar Hotels plans to significantly increase its portfolio, with yearly additions of 15-20 hotels, striving to surpass 150 hotels by 2025. Most of the upcoming establishments, however, will be part of the traditional hotel segment, despite the company's growing interest in highway hospitality.

Bakaya emphasized the need for 'infrastructure status' in the hospitality industry, which could provide longer credit terms and unlock substantial investment. As Sarovar seeks to boost contributions from resort and highway segments, corporate business still dominates revenue, making up 70% currently. The company is also actively pursuing ways to attract more international tourists.

(With inputs from agencies.)