Industry

Cygnett to enter Dhaka, Colombo

Hotel promoters to invest ₹75 crore

Gurugram-based Cygnett Hotels & Resorts is planning to set up hotels in Bangladesh and Sri Lanka soon, said a top official.

“Having established our presence in northern and western parts of the country, we are now eyeing overseas markets,” said Sarbendra Sarkar, founder and MD, Cygnett Hotels & Resorts.

“To begin with, we will enter Bangladesh and Sri Lanka before the end of fiscal 2018, followed by South Asia, Middle East, North Africa and the U.S.”

Eyes 1,800 rooms

The first hotel in Bangladesh (Dhaka) would become operational by March 2019, while it might take 18 months in Colombo. Eventually, Cygnett may manage 1,000 rooms in Bangladesh and 600-800 in Sri Lanka.

“Our investments in these properties would be minimal, as we follow asset-light model,” he said. “We help our partners in building these hotels as per our specifications in technology and in running the property.“The promoters have committed to invest about ₹40 crore in Bangladesh and ₹35 crore in Sri Lanka for 100 rooms each. The average per room investment in Bangladesh is ₹40 lakh and ₹35 lakh in Sri Lanka,” he added.

Though Cygnett Hotels has different categories of hotels ranging from from five star to three star, budget and economy, it would offer five star to three star services in Bangladesh, three and four star services in Sri Lanka.

“Three and four star hotels are [a] growing segment in Sri Lanka. We get good number of travellers from India. But, in the case of Bangladesh, we get travellers from China, Japan and India. There are no branded hotels and we can easily fit in,” he said.

In India and Nepal, Cygnett Hotels operates 679 rooms through 16 hotels. Another 14 hotels are under various stages of development under Cygnett Plaza, Cygnett Park, Cygnett Inn, Cygnett Resorts, Cygnett Residences, Cygnett Lite and Cygnett Express brands.

“We are hopeful of achieving a revenue ₹100 crore by the end of FY18,” he said.

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Printable version | Apr 2, 2020 7:06:56 AM | https://www.thehindu.com/business/Industry/cygnett-to-enter-dhaka-colombo/article24962202.ece

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