Sayaji to inject Rs 275-cr in hotel, restaurant business
Financial Express, Mumbai
20 December 2007

Indore-based Sayaji Hotels Ltd (SHL) plans to invest around Rs275 crore in restaurants and hotels by 2009. But going ahead, the company plans to shift its focus more on the food and beverages business than the traditional hotel business.

The company plans to change its revenue equation between hotels and restaurants from the existing 85%:15% to a 30%:70% model, respectively in the years to come.

"Restaurants involve low investment but high returns," said Sajid Dhanani, promoter and managing director, Sayaji Hotels. In line with this, SHL has launched a new chain called Buffet Junction which will look at the concept of retail food business on a contract basis at various places like malls and hotels.

To start with, the company has entered into a contract with the GenNext 'Smart Basics' hotel — Ginger— of the Indian Hotels Company Limited (IHCL) for running the food business (breakfast, lunch and dinner) at its Baroda hotel.

"It is a lease-cum-revenue sharing agreement," Dhanani said, adding that the company is open to all options and was planning at creating a pan-India presence. On plans of taking as much popular chain, Barbeque Nation abroad, Dhanani said that the plans were on track and by January a desicion would be taken.

"We will open in London first in a couple of months," he said. The company may also look at destinations in Asia including Kuala Lumpur among others with aim to globally make the grand popular. "We will be looking at pan-Asian presence with Barbeque Nation also," he added.

Currently, there are four Barbeque Nation restaurants in the country — at Bangalore, Mumbai, Hyderabad and Delhi. Thirteen more will come up by January 2008 at locations including Chennai, Cahndigarh, Pune among others.

By 2010, SHL plans to have 100-odd Barbeque Nation outlets. On the hotel front SHL has one hotel at Indore and Baroda. A 250-room hotel is being slated to come up at Pune. Construction has been at the site and its expected to be completed by December 2008.

The funds for the Pune hotel project are already being raised through preferential allotment, FCCB and debt.