Hospitality firm Leisure Hotels Group is looking to invest Rs 160 crore to add nine properties across the country to its portfolio by the end of 2021, a top company official has said.
The group currently operates 27 boutique properties with around 875 rooms in India. "We will be investing Rs 160 crore to add 9 properties across the country by the end of 2021. Apart from this, we will also be adding 70 rooms in our existing property in Naukuchiatal during this period," Leisure Hotels Group Director Vibhas Prasad.
Out of the upcoming properties, three will be managed by the group while it will own and operate the rest six, he added. "The new properties will be in Greater Noida, Dehradun, Haridwar, Bhimtal, Manali, Rishikesh, Pench and Kanha among others," he said. Asked how the group plans to fund the expansion, he said it will be a mix of debt and internal accruals.
"Our expenditure is mainly on the properties that we own and operate," Prasad said. Regarding its business model, Prasad said: "We are transitioning from being an asset owning company to an 'asset right' company." Presently Leisure Hotels Group owns 80 per cent of the properties in its portfolio and manages the rest 20 per cent.
On being asked about the strategy for future growth, Prasad said: "We are predominantly a domestic hotel brand and have a strong focus on domestic tourists to drive the business." Founded in 1989, Leisure Hotels Group's portfolio currently comprises hotels, resorts, luxury villas and camps. It is also planning to launch a hostel in Rishikesh in January 2020.