The Hindu Business Line : Gateway Hotels looks for tie-ups to expand

Kochi, Nov. 19 Gateway Hotels, under the Indian Hotels Company Ltd, is looking for partnerships with private parties in 70-80 locations in the country for extending the Gateway brand in Tier-I and II cities.

Mr P.K. Mohankumar, CEO, Gateway Hotels, said entities that own a minimum of 1.5 acres in prominent Tier-I and II cities can join hands with the Taj Group to build a Gateway Hotel. The company will not take any equity participation but will offer management services for the property.

The design for the hotel is standardised and all projects will have 100-300 rooms with an average rent of Rs 5,000-8,000. The idea is to offer 5-star services to young business travellers. The company had already developed a prototype Gateway in Mumbai with a 300-sq.ft room at a cost of about Rs 35-40 lakh, he said.

occupancy volume

Mr Mohankumar said that it had become a favoured brand among young corporate executives during the last one year. The idea is to give competitive pricing with the same facilities at different price points. The global meltdown has made people reduce spending and the mid-market segment has big business now. Given the situation, the company has shifted its focus to increase the volume of occupancy rather than recovery per room, he said. With the Gateway brand in various regions, there will be a new brand of entrepreneurs who own land to develop the new concept, he said. Banks will also be interested in extending financial assistance as they partner with the Taj Group. Several developers in Kolkata, Raipur and Guwahati have expressed interest in partnering with the Group in developing the concept. “However, we are selective as they have to fit into Tata’s philosophy,” he said.

Plans for Kerala

Already 21 hotels are under operation and another 13 in the construction stage under the Gateway brand. The company is to open a 300-room hotel in East Delhi before the Commonwealth Games. By 2012, it expects 25 projects to be completed, he said.

Asked about his plans for Kerala, he said, “We are definitely looking at Kerala as a destination with the potential for developing such a concept. A new hotel project at an investment of Rs 46 crore is coming up at Kakkanad under the brand with 135 rooms. The project, to be developed by the Muthoot Pappachan group, is expected to be commissioned in 2011.”

Besides this, the group is also looking at more centres such as Kannur and Thrissur as possible locations for the new projects.

The objective is to create a Gateway brand in every district headquarters in the State in the long-run, he added.