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We are happy to partner with like-minded financial investors to take the growth forward: Anshu Sarin, CEO, Berggruen Hotels

Forays into Serviced Apartments with Keys Residency brand

Tuesday, October 24, 2017, 09:30 Hrs  [IST]
P Krishna Kumar | New Delhi

Berggruen Hotels operates 22 hotels under Keys brand in India out of which seven are own assets. The hotel company has recently added two hotels to its portfolio in India, one in Port Blair and another one in Ramgarh in Nainital. According to Sarin, three more hotels will be added by the end of the current year, at Hyderabad, Indore and Gurgaon. 

“We got additional funding of INR 200 cr recently from our existing investors, which reaffirms the investor’s faith and confidence in the market. We are in the right space and at the right time in the industry. It is therefore pivotal that we achieve the right size and scale. For that we are happy to partner with like-minded financial institutions, and we are proactively looking at it,” she said.

When asked about investment strategies with new funds coming in, Sarin said that the company has “growth capital” of a different type available and are looking at a “mix of utilisation.” She clarified that the company is keen to pursue an “asset light and asset right model” of growth rather than investing in green field developments in India for the time being. Berggruen Hotels is keen to work on “lease model” with owners and ready to put “key money as last mile funding” at destinations of “strategic importance”, she said.

Berggruen Hotels has forayed into Serviced Apartment business recently by taking two Serviced Apartments in Mumbai to begin with. The company has also launched a dedicated brand ‘Keys Residency’ to take this business forward. “It is a new sub-brand, and we are happy to explore extensions of our accommodation model in places where we can create an identity and offer unique experiences.”

Talking about the overall hotel business environment in the country, Sarin said that there has been steady growth in demand for hotels as the supply has tapered. However, room rates haven’t taken of yet, she informed. “I think that cycle is a good 12 to 24 months away,” she added. In the meanwhile, those who manage to leverage different distribution channels and revenue well, will be able to weather the difficult environment and move forward, she observed.

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