Eyeing a huge business in the no-frills budget hotel segment across the country, TataGroup’s Indian Hotels Company Ltd (IHCL), through its subsidiary Roots Corporation Ltd (RCL) will roll out 50 Ginger hotels within three-four years, according to a top RCL official.
Development of each green field property will require an investment of Rs 14-15 crore (excluding the cost of land) for a 100-room Ginger hotel, Prabhat Pani, chief executive officer of RCL, told FC Estate. He said 25 locations were already finalised and Ginger hotels would come up in 45-50 cities. The money will be raised through equity from its parent IHCL and debt he added.
At present, the company has invested Rs 300 crore in constructing 20 Ginger hotels with a total of 2,000 rooms across 20 cities. The occupancy level was 75 per cent on an average, Pani said, adding that for the Christmas and New Year season they were almost fully booked.
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