1. CG Group to invest around INR 50 crore into Concept Hospitality in India

CG Group to invest around INR 50 crore into Concept Hospitality in India

Chaudhary Group (CG) Hotels and Resorts has taken a strategic investment in Concept Hospitality which owns The Fern Brand in India

By: | Updated: March 27, 2015 1:19 PM

Nepal-based Chaudhary Group (CG) Hotels and Resorts has taken a strategic decision to invest in Concept Hospitality, which owns The Fern Brand in India (Fern Hotels and Resorts, the Fern Residency and the Beacon). The investment amount is said to be approximately INR 50 crore. Following this investment decision, Concept Hospitality will manage hotels belonging to CG Hotels and Resorts. CG Hotels and Resorts will help all hotels under its umbrella by offering a broader platform and international reach. In an exclusive with Financial Express Online, Binod Chaudhury, chairman, CG Group informed, “We have a strategic alliance with The Fern brand. We would be investing a great deal of approximately INR 50 crore in promoting the venture. Apart from this we would actively invest in assets giving them a broader national and international reach. The group’s vision is to grow to 200 hotels by 2020 and play a dominant role in the hospitality space globally. We would reach this though acquisition, last mile funding and management of new assets.” He also added, “We want to actively expand and manage Fern in India and overseas and give them an international edge. We commit to the environmental values of Fern and aim to spread the word through our sustainable hotels.” CG Hotels has several international sales offices which will help promote all hotels (both under its in-house brand Zinc Hospitality and Concept Hospitality). All the brands will now come under CG Hotels and Resorts. Based on the market, type of product, the hotel will be flagged under one of its brands.

He also added, “We want to actively expand and manage Fern in India and overseas and give them an international edge. We commit to the environmental values of Fern and aim to spread the word through our sustainable hotels.” CG Hotels has several international sales offices which will help promote all hotels (both under its in-house brand Zinc Hospitality and Concept Hospitality). All the brands will now come under CG Hotels and Resorts. Based on the market, type of product, the hotel will be flagged under one of its brands.

When contact for further details on the alliance, Param Kannampilly, chairman and managing director, Concept Hospitality elaborated, “We have entered into a strategic investment for an alliance with CG Group and are quite excited about it. By 2017-18 CG Group is expected to buyout certain private equity shares from our company. Through this association we are the management wing of CG Group, and by 2017 we will have 88 hotels in various locations. Together presently we have 53 hotels and offer eight brands- Glow by Zinc, Zinc Journey, Zinc Living, Zinc City, The Fern, The Fern Residency , Beacon Hotels and Resorts as part of our portfolio. Our aim is to operate 200 hotels by 2020. We are presently identifying areas for our expansion and we are creating a business development arm to help us identify locations to reach our vision of having the balance 120 hotels as required.” Presently, Concept Hospitality has 1,500 room inventory and with more number of the Fern brand opening by 2017 another 1,500 rooms will be added. Apart from India, through the alliance, there are plans to expand into East Africa and Kathmandu by the end of this calendar year. “In East Africa, we will have The Zinc, and in Katmandu we will have Zinc City, Zinc Journey and Zinc Living. If we find more suitable and good locations then apart from managing properties CG Group will also invest into them,” mentioned Kannampilly, adding that, “destinations like Chennai city, Orissa, Madhya Pradesh, Shillong, Siliguri, Sikkim could be looked at for our expansion plans in India.”

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