Sarovar Hotels, part of the French Louvre Hotels Group, has invested Rs 120 crore in its project Sarovar Portico, Sriperumbudur in Tamil Nadu, the company's largest investment in a hotel property to date, according to top executives.
"This project (Sarovar Portico, Sriperumbudur) will open in the next two months and represents our largest investment to date," said Ajay Bakaya, chairman of Sarovar Hotels and director of Louvre Hotels India. "This will change the dynamics of our revenue streams, and Sriperumbudur, which is a very strong large-scale manufacturing hub—from Apple's iPhones (assembly unit for iPhones in India) to Saint-Gobain's glass operations—will be a big thing for Sarovar Hotels."
Bakaya went on to say that manufacturing hubs like Sriperumbudur benefit the hotel industry because of the region's high concentration of support hotels. Sarovar Hotels currently operates 137 hotels in 85 destinations across India, with a presence in Nepal and Africa. He added that by the end of 2025, they expect to add 16 to 20 hotels, including regions in India and Nepal, as well as a new opening in Somaliland, Africa.
The company has already opened five hotels during the January-March quarter. In terms of international expansion, the hotel company intends to expand into Sri Lanka and re-establish its presence in the Middle East.
"With all the openings of new hotels and the existing performance of current hotels, we expect a 17 per cent increase in our overall revenue in 2025," Bakaya told investors.
This comes after the hotel company recorded 27 openings, 43 signings, and high double-digit growth in 2024, according to Jatin Khanna, Sarovar Hotels' CEO. He added that Sarovar Hotels has always maintained its identity as a mid-market hotel chain and has no plans to expand into other segments of the country.
Khanna added that by the end of the year, the hotel would have 95 locations across the country. Currently, 65% of the hotel's portfolio is located in Tier II and Tier III cities.
