Puducherry-based TGI (The Great India) Group of Hotels and Resorts is planning to expand its room inventory fivefold to 2,000 by 2020, said a top official.
Tier II, Tier III cities
“Currently, we are operating eight properties with 400 rooms,” said Amitava Roy, founder and chief executive officer, TGI Group. “We will start expanding our business operations by entering mostly Tier-II and Tier-III cities as major cities are saturated.
“By 2020, our plan is to have 2,000 rooms under our fold in 30 properties. We operate on an asset-light model (which means they do not invest in land and construction), as it is easier to take over and manage existing or under- construction properties,” he said.
“After strengthening our brand in the country, we will start moving to neighbouring countries such as Nepal, Sri Lanka, Bhutan and Vietnam. But this will happen after 2020,” he said.
As per the proposed plan, TGI Group would be entering Indore, Ujjain, Bhopal, Thekkady, Tiruppur, Kannur, Coimbatore, Gujarat and Chhattisgarh. The group plans to manage up to 70 rooms in each of these properties.
“In the month of November, we will start operating a hotel in Bhopal with 40 rooms followed by Thekkady, Kerala with 36 rooms during December. Gujarat and Chhattisgarh properties would commence operations next year. Currently, we are negotiating with a property owner in Chhattisgarh,” he said. The founders have dropped their plan of entering Kodaikanal and Masinagudi in Karnataka. However, they are still searching for property in Thiruvannamalai.
TGI Group expects 60% of revenue to come from South, 20% from Madhya Pradesh and balance from the East.
