Cygnett Hotels & Resorts, which operates over 35 hotels in India and two overseas, is eyeing South Asian markets for expansion. The group has witnessed significant growth in India market over the last couple of years.
Speaking about the expansion plans, Sarbendra Sarkar, Founder & MD, Cygnett Hotels & Resorts said, “Cygnett is on a steady growth trajectory and we are opening /signing hotels in double-digits every year. This year, we are planning to operate 35+ hotels in India and are planning to venture into the international waters as well. On India specific plans, we are enamoured by the untouched beauty of the Northeast and have a presence in two of the seven sisters of NE India. We will be opening two more hotels in that region this year. With the number of leisure travelers going up every year, we are looking to have a presence at leisure destinations such as Nainital, Jim Corbett, Ranthambore, Srinagar and more; we are also expanding our portfolio in the metro and urban cities. All these expansion measures will help grow our Cygnett Resort, Cygnett Park, and Cygnett Inn brands. On the international front, we are already operating in Nepal and we would be making forays into some territories in the South Asian countries.”
Being in the mid-market segment, the group is witnessing a healthy average occupancy of around 73 per cent. Sarkar feels 2019 to be a good year for the hospitality industry.
“The hotel industry experienced an inflection point in the year 2018 in many ways. Average rates grew by approximately 6.25 per cent in 2018, unlike in 2017 and 2016, where occupancy was the main driver of growth in RevPAR. We achieved an ARR of Rs 3000 with 73 per cent average occupancy and RevPAR around 2150. 2019 should be a positive year as there is a gap in demand and supply. The need for rooms is scaling the graph at a pace higher than the supply. Also, economic stability in the country would again be a favourable trigger for growth.”
He said that the percentage of contribution to the revenue from the MICE segment has grown. “Because of substantial presence of food aggregators, there have been some challenges in boosting the F&B as people are finding home deliveries more comfortable. Still, room occupancy has been the major contributor to the overall performance of the units,” he added.
The group is looking to tap markets where the branded hotel segment is still at a very nascent stage. “Most of our current operations are in tier II &tier III cities. This segment has been our strategic focus because these markets are devoid of branded chains and we intend to establish our brands and capture the target audiences’ mind space with our brands. Consequent to this, we are planning to capture more territories in the same. Smaller cities are experiencing a surge in travel and are attracting tourists because of various economic initiatives. The main challenges are to deliver the same brand message across and meeting the expectations of the people,” he added.
