Sarovar eyes 150 hotels by year-end: Ajay Bakaya

Sarovar Hotels has seen a remarkable growth in recent years, with 2024 seeing the launch of 27 new properties. Top leadership of the group shares insights into the brand’s vision and strategies to maintain its lead in the mid-market segment.

Surbhi Sharma

Sarovar Hotels, one of India’s leading hotel chains with 135 hotels in 85 destinations across India, Nepal and Africa, has undergone a remarkable growth over the years. As it looks to the future, the brand is well-positioned to continue its growth in the domestic and international markets, while staying true to its core values of offering affordable, high-quality accommodation with a strong emphasis on local culture and sustainability.

Vision & growth

Elaborating on the success, Ajay K Bakaya, Chairman, Sarovar Hotels, said that 2024 was a record year, with 27 new hotels opened and 43 new properties signed. “This growth has exceeded our expectations,” he said. With a strong government policy and increased infrastructure spending, Bakaya foresees a steady growth trajectory over the next four years, positioning the brand as a leader in the mid-market segment. By 2025, Sarovar Hotels is expected to surpass 150 properties, with over 10,000 rooms across 90 destinations.

While Sarovar Hotels is often associated with the mid-market segment, Bakaya emphasises that the brand also has premium properties, though it remains committed to its core mid-market audience. “We have no aspirations of grandeur. We serve a particular segment, and we do it well,” he said.

Sarovar currently maintains a balance of 80 per cent mid-market hotels and 20 per cent premium properties. Sharing more updates, Bakaya said, “We are looking for stronger, larger and better properties, more landmark hotels under every single brand. We are currently in the process of renovating our hotel in Chandigarh under a three-year plan, which starts from this year and carries on to 2027. Meanwhile, we are building a 156-key Sarovar Portico in Chennai that will launch in the first half of this year. We are creating benchmarks, but we remain true to the mid-market cause and the mid-market customer.”

Sharing his vision for Sarovar Hotels’ role in shaping the future of the Indian hospitality industry,
Jatin Khanna, CEO, Sarovar Hotels, said, “We want to keep on growing and to be consistent in what we have been doing and what has been working for us and at the same time keep on upgrading our guest experiences and technology part. Our vision is aligned with our principal partner’s vision that every time an owner or a guest or an employee thinks about engaging with the industry, we should be one of their top choices.”

Sarovar’s USP

In an increasingly competitive hospitality landscape, Sarovar Hotels has maintained its edge by staying true to its roots. Bakaya attributes much of the brand’s success to its early entry into tier II and III markets, where many multinational chains were hesitant to venture. This strategic move has given Sarovar Hotels a significant head starts in these regions. The mid-market segment, especially tier II, III, and IV cities, remains a key area of growth for the brand. As these cities experience rapid development, Sarovar is well-positioned to cater to the rising demand for high-quality, affordable accommodation.

Expansion plans

Sarovar Hotels continues to focus on balanced growth across city and leisure hotels, with a 70:30 ratio. Domestically, the brand has a strong presence in major cities like Goa, Bangalore, Delhi NCR, and Mumbai, with plans to expand in cities like Lucknow, where the number of hotels will increase from three to six or seven in the coming years. Internationally, the brand is expanding its footprint in Africa from existing three to five hotels, with properties in Hargeisa (Somaliland) and Kampala (Uganda) set to open by 2025. The brand also has a strong presence in Nepal, where it plans to increase its portfolio to four hotels by 2025 end. Although Sarovar is yet to establish presence in the Middle East, Bakaya remains optimistic about future opportunities in the region.

Growth & occupancy

Bakaya is pleased with Sarovar Hotels’ performance in 2024, which saw a growth rate of over 9%, surpassing the initial forecast. The addition of new properties further boosted the brand’s overall growth to around 13 per cent year-on-year. Looking ahead, he expects this growth momentum to continue in 2025 and beyond.