Feb 1, 2013: Key Hotels which has got 19 hotels in different stages of development is going to take the franchise route as part of expansion. The flagship brand of Berggruen Hotels will be striking two deals through this route in the near future and the company is targeting more than 8 franchise deals by the next financial year. With this strategy, Berggruen Hotels expects to have 50 hotels in this vertical in the next five years. According to Mr. Sanjay Sethi, MD and CEO Berggruen Hotels, “We are targeting 8-10 franchise deals by the end of the next financial year to reach up to 50 in this vertical, by the next five years”.
Key Hotels through this franchise association is planning to extend high end resources to locations which it will not be opening hotels directly. The franchise model is said to be high on yield and low on revenue but is said to be a win win proposition for both the franchiser and franchisee.
