The Hindu Business Line : Residency Hotels Group eyeing tier II cities in South

It has, over the last decade-and half, strengthened its presence across Chennai, Bangalore and Coimbatore. It took over a sick-hotel in Karur about a year ago. This is presently being refurbished to the Group's style.

Speaking to Business Line, the Group's Chief Executive Officer, Mr K.C. Tharyan, said entry into Karur gave The Residency the strength to penetrate tier II cities. Without divulging the Group's investment in the Karur set-up, he said `we have taken this hotel on a long-term lease. The renovation expenses are being borne by the original owner. We are operating partners in this venture."

The first phase of the project is expected to be ready and operational by the end of the current fiscal. "The restaurant, lobby and two floors would be ready within the next 50 days. Thereafter, we will commence the second phase of this project, which would include work on the banquet hall, business centre, gym and administrative office and staff areas. We hope to complete this by March 2008," he said.

"We would like to establish our presence in Hyderabad, but have not finalised the deal as yet. We are exploring options and on the hunt, but would not like to get into the `rat-race' at this point," he added.

He said the Group would look at opportunities in the South and tier II towns such as Madurai in particular, because `South is more affordable than North or West.'

Asked how the Group would like to position itself, Mr Tharyan said "wherever we go, we will give absolute value for money. This is becoming a difficult proposition because the land and labour costs are rising. But we will not compromise," he added.

The Group plans to add another three hotels to its existing chain of five (two in Chennai, one each at Coimbatore, Bangalore and Karur) in a span of three years. "Our turnover has swelled from Rs 4 crore in the early 90s to over Rs 75 crore now," Mr Tharyan said.

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