Focusing on the five-star accommodation segment, Lighthouse Fund-backed Concept Hospitality Pvt Ltd (CHPL) will add over 650 guest rooms in the financial year 2012-13. A pure play hotel management firm, Concept has lined up a slew of launches across cities like Mumbai, Chennai, Chandigarh and Tejpur (Assam). CHPL’s current development pipeline includes 15 hotels across metros, tier II and III cities in the country of which the management expects 8 hotels to be operational by March 2013.
Param Kannampilly, chairman and managing director, CHPL, said, the company added a little over 500 guest rooms in the last 12-odd months taking the total number managed guestrooms to 1,207 across 20 hotels. “The next 12-16 months will see 8 new hotels getting operational adding approximately 660 guestrooms. All the new hotels will be five-star carrying The Fern flag. Among the new launches, five properties will be launched in the city of Chennai and will also mark our foray there,” he said.
The company – on a collective basis – is targeting a turnover of Rs 200 crore for the current fiscal of which Rs 65 crore has been achieved in the first half already. “We are currently in the business season and will enter the peak season in a few weeks from now. We are very much on track to achieve the Rs 200 crore turnover target in this fiscal as against Rs 120 crore in the previous financial year,” he said. On an entity level, CHPL (as a management company receiving management fees and other revenues) will register a turnover in excess of Rs 12 crore.
Managing hotels under The Fern, The Fern Residency and Beacon brands, CHPL will opened four 'ecotel' hotels in the five-star segment adding over 300 guest rooms under its flagship 'The Fern' brand across key metros and mini-metros in the country.
In Mumbai, the hotel management company opened Hiranandani Group’s second ecotel project the 141-rooms, Meluha - The Fern at Powai in March 2011. The first one – Rodas - an Ecotel hotel – also in Powai is managed by Concept as well. The company also manages a 35-room boutique hotel at Bandra called Grand Residency. Another 75-room hotel is currently in the final stages of completion and will come up in Chembur early next year and will be branded as The Fern Residency. The company’s fifth hotel in Mumbai is currently under development in Goregaon and is likely to start receiving guests sometime in 2014. “Going by the letter of intends (LoI) we have signed already Mumbai and Chennai will be two cities with five hotels each,” he said.
Elaborating on the funding for new developments, Kannampilly said, investment for all the hotels will be done by the respective asset owning companies with Concept coming in as a branding, operating and management partner. On an average, the cost per key for The Fern hotels ranges between Rs 55 to Rs 65 lakh excluding land and financing costs. In the three- and four-star categories, CHPL manages hotels under 'The Fern Residency' brand. The average cost per room for this category of hotels is Rs 25 lakh excluding land and financing costs.
The company is actively pursuing management contracts in the international markets and is currently in discussion with hotel asset developers in countries like Bangladesh, Tanzania and South Africa. While in Tanzania CHPL is mulling an eco village cum city-based resort project, it will be a management contract initially in Bangladesh followed by a joint venture with the same developer to manege eco-friendly hotels there. As for South Africa, the company is doing a management contract for a four-star hotel in the outskirts of Johannesburg.
Param Kannampilly, chairman and managing director, CHPL, said, the company added a little over 500 guest rooms in the last 12-odd months taking the total number managed guestrooms to 1,207 across 20 hotels. “The next 12-16 months will see 8 new hotels getting operational adding approximately 660 guestrooms. All the new hotels will be five-star carrying The Fern flag. Among the new launches, five properties will be launched in the city of Chennai and will also mark our foray there,” he said.
The company – on a collective basis – is targeting a turnover of Rs 200 crore for the current fiscal of which Rs 65 crore has been achieved in the first half already. “We are currently in the business season and will enter the peak season in a few weeks from now. We are very much on track to achieve the Rs 200 crore turnover target in this fiscal as against Rs 120 crore in the previous financial year,” he said. On an entity level, CHPL (as a management company receiving management fees and other revenues) will register a turnover in excess of Rs 12 crore.
Managing hotels under The Fern, The Fern Residency and Beacon brands, CHPL will opened four 'ecotel' hotels in the five-star segment adding over 300 guest rooms under its flagship 'The Fern' brand across key metros and mini-metros in the country.
In Mumbai, the hotel management company opened Hiranandani Group’s second ecotel project the 141-rooms, Meluha - The Fern at Powai in March 2011. The first one – Rodas - an Ecotel hotel – also in Powai is managed by Concept as well. The company also manages a 35-room boutique hotel at Bandra called Grand Residency. Another 75-room hotel is currently in the final stages of completion and will come up in Chembur early next year and will be branded as The Fern Residency. The company’s fifth hotel in Mumbai is currently under development in Goregaon and is likely to start receiving guests sometime in 2014. “Going by the letter of intends (LoI) we have signed already Mumbai and Chennai will be two cities with five hotels each,” he said.
Elaborating on the funding for new developments, Kannampilly said, investment for all the hotels will be done by the respective asset owning companies with Concept coming in as a branding, operating and management partner. On an average, the cost per key for The Fern hotels ranges between Rs 55 to Rs 65 lakh excluding land and financing costs. In the three- and four-star categories, CHPL manages hotels under 'The Fern Residency' brand. The average cost per room for this category of hotels is Rs 25 lakh excluding land and financing costs.
The company is actively pursuing management contracts in the international markets and is currently in discussion with hotel asset developers in countries like Bangladesh, Tanzania and South Africa. While in Tanzania CHPL is mulling an eco village cum city-based resort project, it will be a management contract initially in Bangladesh followed by a joint venture with the same developer to manege eco-friendly hotels there. As for South Africa, the company is doing a management contract for a four-star hotel in the outskirts of Johannesburg.
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