After changing the shape of India's aviation business, Captain GR Gopinath is all set to spearhead a new venture in hospitality.
The man behind India's budget airline is now looking to give the country its largest hotel chain. Sources say that GR Gopinath, former promoter of Air Deccan, has tied up with an investment banker from the US to set up a chain of 1,000 hotels across 100 towns and cities over the next 10 years. The hotels are expected to be in the mid-tier and budget categories. And depending on the location, they will have between 50 and 125 rooms. That's an average investment of Rs 50 crore on each property.
The company is said to be in talks with PE players as well as institutional investors as a majority of the funds will need to be raised externally. Due to the large investment involved, promoters are said to be looking at a split business model. While they will own and operate a large number of hotels, many will also be marketed under the franchise route.
The projects are expected to go on stream by the end of the year. The company, Deccan Hospitality, is expected to make a formal announcement next month. Though the brand name for the hotel chain is yet to be finalized, Gopinath and his team are currently on a hiring spree for talent to head the business from overseas.
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