Even though Anil Madhok spent 25 years working for the uber luxury Oberoi Group, when the entrepreneurship bug bit him, he decided to open a mid-market hotel management company ?Sarovar Hotels. And, even if the hotel is a high capital business, for Madhok it wasn’t a tough call money-wise, since he started out as a management company. It’s only in the past few years that the group ventured into owning hotels. This hotel entrepreneur from the last decade heads a 1,000-people-strong company today and has five brands under its umbrella?Sarovar Premiere, Sarovar Portico, Hometel, Park Plaza and Park Inn. After two years of floating his company, Ajay Bakaya, who shared the same vision as Madhok, joined the group with 20% stake. As executive director of the company, he handles day-to-day functions and is as much a face of the hotel group as Madhok.
Currently, Sarovar Hotels has 46 hotels, of which only two are owned. Outlining the plans of the company, Madhok says, ?In the next three years, we will have strong internal accruals, and about 75 hotels. That is when we will go for private placement or an IPO.? The 46 hotels together will have a turnover of Rs 400 crore this fiscal, but Sarovar Hotels? revenue, which includes management fee and turnover of the owned hotels, will be to the tune of Rs 60-70 crore. Though the group set its first overseas property 12 years back, it’s only recently that it has added more properties to its foreign portfolio.
He feels there haven’t been many hotel entrepreneurs in the country, but with tourism booming and aviation picking up, the prospects look bright. The profit margins are attractive too. ?Even at a room rate of $150 per night, one can make profits. But in India rates went up as high as $500, though some correction has been seen. Occupancy of the industry remains good, even though room rates have dipped,? he says. With lucrative bottomlines, Madhok is sure the industry will witness many new players.
