Jain Group open to inorganic growth in hospitality sector plans Rs 500-cr capex by 2030

Kolkata, Dec 11 (PTI) Kolkata-based Jain Group, which plans to invest Rs 500 crore in the hospitality sector by 2030, on Wednesday said it remains open to inorganic growth, as the segment already accounts for nearly 50 per cent of its total annual revenue.
    The group aided Sarovar brand's re-entry into Kolkata after a gap of 5 years. Sarovar Portico Kolkata at Rajarhat was launched on Wednesday, a 128-key mid-market hotel.

    It is Sarovar brand's re-entry to the Kolkata market after five years, in partnership with Jain Group, following the end of its management contract with Peerless Hotels in 2018.

    However, Sarovar Hotels' other brand Golden Tulip is operating a property in the city.
    Sarovar Hotels, a part of the French Louvre Hotels Group, manages a chain of 135 hotels across India, most of which operate under management contracts.

    Louvre Hotels Group is a subsidiary of Jin Jiang International Holdings Co Ltd, one of China's largest tourism and travel conglomerates.

    "This is our second operational hotel in the city. We have tied up with Sarovar Hotels for the brand and operational contract. Currently, this is the only hotel branded as Sarovar in the city. Our first operational hotel, also in New Town, is under the Holiday Inn brand," Jain Group Managing Director Rishi Jain said.
    "We are open to inorganic growth and so looking for acquisition opportunities, as hospitality remains important contributing 50 per cent of our revenues and profits. We are going to open a 95-key hotel in the city within the next three months, along with two more Holiday Inn hotels lined up—one each in Durgapur and Siliguri," Jain told PTI.
    He stated that the debt-free company is in no rush to tap the capital market until its revenue grows substantially from the current level of Rs 120 crore in FY24.
    "Our real estate and hospitality businesses combined are growing at a CAGR of 30 per cent. Once we reach a revenue size of Rs 1,000 crore, we will explore the capital markets," he said, adding that public equity is a "low-risk but high-cost fund compared to debt, which is just the opposite."
    Jain Group Vice-Chairman Shrayans Jain said the group aims to invest Rs 500 crore in the hospitality sector to create a 1,000-key portfolio by 2030, nearly three times its current capacity.
    Ajay K Bakaya, Chairman of Sarovar Hotels, said the company is keen on expanding its presence in eastern India and is looking for more assets in the region.

    "We aim to increase our properties to at least 150 hotels by 2025," he said.

(This story has not been edited by THE WEEK and is auto-generated from PTI)