Sarovar Hotels Pvt Ltd is gearing up for significant expansion, with plans to operate 150 hotels across more than 90 destinations by the end of 2025. With a robust portfolio of 125 hotels in 80 destinations throughout India and beyond, the company is thriving in the hospitality sector, which is witnessing a surge in demand.

Jatin Khanna, CEO of Sarovar Hotels, noted that the company has experienced strong double-digit growth in the last couple of years, with a remarkable 15% increase. He explained that while initial growth was driven primarily by occupancy and rates, recent momentum is attributed to improvements in Average Daily Rate (ADR) and the strategic expansion into new properties and destinations. "Our excellence in management within the mid-market segment and focus on building long-term relationships with hotel owners have contributed to this sustained growth," Khanna remarked.

Future Plans and Growth Strategy
Currently, Sarovar Hotels operates 125 properties, but by 2025, the goal is to expand this number to 150. The company is focusing particularly on leisure and pilgrimage segments in India, with international ventures in Africa and Nepal. The majority of Sarovar's portfolio comprises management contracts, with only two owned properties. The third owned hotel is set to open in Sriperumbudur, near Chennai. Khanna highlighted a keen focus on expanding the Sarovar Portico brand in the 3- to 4-star category while exploring growth opportunities for the Tulip brand.

Adapting to Tier II and III Markets

Sarovar Hotels has made inroads into several Tier II and III cities, which present both challenges and opportunities. Khanna noted that while increasing ADR in these markets can be challenging, the potential for growth is significant, particularly in the wedding segment, which tends to be larger in size in these areas. "To succeed in these markets, we adapt our services to local needs while maintaining high standards," he said, emphasizing the importance of building community relationships and delivering personalized experiences to compete effectively with larger, international brands.

Demand Trends and Geographic Spread
Key source markets for Sarovar Hotels currently include NCR, Mumbai, Gujarat, and Bangalore, with Surat emerging as a high-growth area. As domestic tourism continues to rise, more demand is expected from Tier II and III markets. Khanna explained, "Economic growth and a shift toward exploring lesser-known destinations are driving interest in quality hospitality in these regions," aligning with Sarovar's strategy to enhance its presence in high-potential areas.

With over 30 years of experience, Sarovar Hotels leverages its deep understanding of the Indian market, particularly in Tier II and III cities. Khanna emphasized that the company's first-mover advantage allows it to forge strong local connections and operational efficiency. "We offer authentic, localized experiences that reflect the cultural ethos of Indian hospitality, from regional cuisine to customized packages for pilgrimage and local tours," he explained.

Current Challenges and the Future Landscape

Despite the positive outlook, the hospitality sector faces challenges, including talent acquisition and the need to enhance technology infrastructure. "The shortage of skilled professionals in the hospitality sector remains a pressing concern," Khanna acknowledged. The company is tackling these issues by investing in training initiatives and enhancing tech capabilities to streamline operations and improve efficiency.

As the travel industry evolves, Sarovar Hotels is positioning itself to meet changing traveler demands, focusing on unique, localized experiences and sustainability. "Our initiatives in energy efficiency and community support are integrated across our properties," Khanna stated. With strong representation in business, leisure, and pilgrimage tourism, Sarovar is poised to continue delivering exceptional service in the dynamic hospitality landscape.