The Hindu Business Line : Royal Orchid Hotels in pact with Vascon

Pune, Feb. 2 The Bangalore-based hotel chain Royal Orchid Hotels Ltd has signed a contract with the Pune-based builders Vascon Engineers to launch 72 service apartments brand-named Royal Orchid Suites at Kalyani Nagar here by early March.

Last month, it also signed a contract with international hospitality chain Wyndham Hotel group, USA to manage at least 10 Ramada hotels, including one in Pune, over the next five years. These will all be in the 4-star category aimed at the business traveller, Mr Chander Baljee, Chairman and Managing Director, said.

The service apartments, the first in the city to be run by a hotel chain, are in two sizes `studio' and the larger `single-bedroom', and the property is equipped with a gymnasium, coffee shop, lounge bar, wi-fi and conference facilities. The charge was still being fine tuned, but will be in the region of Rs 5,000 per suite per day, Mr Baljee said. The reservation system for all ROHL properties is centralised from Bangalore.

ROHL has entered into a 20-year agreement with Vascon to manage the apartments. Declining to comment on the exact financials of the deal, Mr Baljee said they generally worked on the basis of sharing 3 per cent of the revenue and 8 per cent of the gross operating profit.

The company has outlined a Rs 500-crore expansion plan that will give them a national presence in both the metros and the tier two cities in the next two years.

More Stories on : Alliances & Joint Ventures | Hotels | Maharashtra

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