Quality over Quantity: Sarovar’s steady steps in mid-market segment
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Posts 16 - 17% growth in 2024, eyes over 15% sustained growth ahead.
Talking about the response received in 2024, Ajay K. Bakaya, Chairman, Sarovar Hotels and Director, Louvre Hotels India, shared exclusively with T3 that the company experienced a year-on-year growth of approximately 16–17% over 2023. Of this growth, around 60% came from same-store performance, while the remainder was driven by new hotel openings. “I’m expecting similar growth, 15% or more, on a company-wide basis for at least the next four calendar years,” he added.
When asked about the top revenue-generating markets, Bakaya mentioned that Delhi and Mumbai lead the list. Both markets, he noted, are performing exceptionally well. “Our major markets are primarily the larger metros, in the order: Delhi, Mumbai, Bengaluru, and Hyderabad,” he said.
Speaking about opportunities beyond India, Bakaya noted that while Africa is generating modest volumes, the revenue is high. “We have the finest hotel in Zambia, we are competing with international brands and are head and shoulders above the rest. We are now setting up a fantastic hotel in Somalia, set to open in the next 30 to 60 days,” he added.
Elaborating on market segments, Bakaya highlighted that the group’s leisure properties, located in destinations such as Goa, Kerala, Jaipur, Agra, and Kashmir, form a strong part of their portfolio. He added, “We are also present in the religious tourism segment, with properties in Amritsar, Vrindavan, Ajmer, Tirupati, and more. This is another key growth area for us. In fact, Ayodhya is currently witnessing strong traction. Nepal is also emerging as a promising and maturing market for us.”
When asked about future expansion plans, Bakaya remarked, “We are all investors, we don’t have the luxury of picking and choosing destinations. We chase opportunities and make sure to seize them wherever they arise.” He shared that a property is currently in the pipeline in Lonavala and Khandala, with more developments expected in that region. “We’re also entering Patna, and there is one place I would like to be right now, it’s Guwahati, and more locations across the North-East. I would also like to expand into Rameshwaram. We are already present at the top, but not yet at the bottom. We will go wherever the opportunity presents itself,” he explained.
Speaking about the traveller portfolio, Bakaya noted that the largest share comes from business hotels in cities. “Our MICE segment is primarily concentrated in Punjab and Bengaluru, with a strong presence in Punjab, with hotels in Chandigarh, Ludhiana, Jalandhar, and Amritsar as well as large facilities in Bengaluru, along with a few in Kerala,” he said. Bakaya added that city hotels will continue to be the group’s core focus, with the current business-to-leisure ratio standing at approximately 70:30.
Discussing Sarovar’s positioning within the increasingly competitive mid-market segment, Bakaya said, “Sarovar Portico is our flagship brand, with 75 of our hotels falling under this category. We’re currently developing our own hotel in Chennai, set to open in June, which will rival some of our Premiere properties.” He shared an internal conversation that sparked the brand strategy, “The question within the company was why are we calling this a Portico and not a Premiere? My answer is I want this property to set the benchmark for all future Porticos. We’re raising the bar, elevating the standards, so that when owners approach us and say, ‘Take a look at this hotel, this is what a Portico should really be like.”
“Among the initiatives we’re implementing is the provision of pure drinking water in guest rooms, delivered through a dedicated circuit, that comes at a significant cost,” Bakaya shared. “There’s no need for bottled water; guests can simply use a sensor-enabled tap to fill their glass with purified water, available 24/7 at the ideal temperature. This decision went against the advice of both our finance and engineering teams, but we are proud to be the first in the country to introduce such a feature in the mid-market segment. While we’re not in the luxury space, we’re committed to setting new benchmarks.”
Reinforcing the brand’s positioning, Bakaya asserted, “I don’t want to be the biggest, I am comfortable with where we are. But I will fiercely protect my brand. I won’t pursue mass franchising, because I believe it would dilute the brand and strip away its value. Our focus remains firmly on maintaining quality.”