Starting from May to December 2013, Best Western is set to launch 12 hotels for the year. According to Sudhir Sinha, President & COO, Best Western India, the company had a good year in 2012 and is looking to grow its portfolio in tier II cities across India this year.
“We have signed seven properties under franchise agreements and five under management contracts. Tier II cities are the best locations for mid-market segment hotels as land is available at a reasonable price and the shortage of quality banqueting venues allows us to fill in the void,” said Sinha. He further opined that metro cities are not sensible locations for mid-market hotels as the return on investment is not good enough.
The chain is setting up properties in Jaipur, Katra, Jalandhar, Tirupati, Ambala (June), Hyderabad (May) Bhubaneswar, Amritsar, Navi Mumbai, Kolkata, Goa and Mumbai (December). Altogether the properties will add 846 rooms to the chain’s current inventory in India. In addition, the hotel has signed on properties in Aurangabad, Kodaikanal, Zirakpur and Bhubaneswar to be opened between April and December 2014, bringing the chain’s inventory to 2,366 rooms.
“Our expansion has been slower compared to the last quarter. But we are careful while choosing partners who will understand and maintain the brand standard and those we can drive value to in terms of branding. It is the first time hoteliers that largely request our services as our term specifications are flexible and our fee structure more viable, aside from the value we drive to the hotel,” said Sinha.
Sinha further revealed that Best Western is keen on operating hotels in markets such as Guwahati and Shillong, among others. To add to their portfolio of hotels in pilgrimage destinations, Best Western is also actively looking for partners in Varanasi, Konark and Puri. “We are also interested in tourist destinations that witness healthy inbound footfall as the Best Western reputation and loyalty abroad will help drive in bookings,” he stated.
According to Sinha, the growth rate of Best Western in India has been great over the years. “In 2008 we had six properties. Today we have 41, with 25 operational. It shows healthy demand for mid-market hotels in the country,” he concluded.
