Gurugram-based Cygnett Hotels and Resorts said it would open at least seven hotels in the fourth quarter of 2017, according to a top official.
“These hotels will come up mostly in tier-II cities of the North and the West,” said Alok Verman, chief executive officer, Cygnett Hotels and Resorts. “We will be adding over 330 rooms (keys) by December.”
Cygnett Hotels has drawn up an ambitious plan of having 2,000 keys by 2020 from the present 600 keys. With the current expansion, the number of keys will increase to 930. The number of properties under Cygnett’s management will increase to 15, including one in Nepal, from the current eight.
Asset-light model
Cygnett will open upscale hotels in Udaipur (35 keys), Mysuru (66) and Katra (50) during October. This would be followed by three more properties in November at Nawansahahr in Punjab (50), Dwarka (50) and Amritsar (33). During December, Cygnett will enter Goa with 48 keys.
“We follow an asset-light model, wherein we run properties on management contract basis instead of investing in physical assets. Hence, our investments will not be much. These properties will be managed either under Cygnett Inn brand or Lite brand,” he said.
On plans to open hotels targeting pilgrimage and adventure tourism, he said talks were on to open properties in Vrindhavan and Bhimtal and Jim Corbett in Uttarakhand and Ranthambore, Rajasthan.
Mr. Verma also said that company officials would visit Bangladesh this month to explore the expansion of the firm’s brand in the country. Cygnett has identified a property with 200 rooms. Similarly, talks are on with Gangtok-based property owners and its property there is likely to become operational next year.
“In the next three years, we will be opening at least seven hotels in different cities with over 300 keys each to reach our target of 2,000 keys,” he said.
Last year, the firm reported income of ₹30 crore through five properties. This year, it is eyeing revenues of ₹60 crore, Mr. Verma said. By 2020, he is hopeful of touching ₹500 crore.