Leisure Hotels foray into hostel and resitel segments
The group plans to fund the expansion with a mix of debt and internal accruals
In a bid to tap the potential of alternative and long-stay accommodation sectors, Dehradun-based hospitality firm Leisure Hotels Group is diversifying into the hostel and resitel segments, even as it executes an expansion plan in its core hotel segment. Leisure’s hostel will comprise budget accommodation under the Bedz brand that will come up in Rishikesh by the end of the year.
The second hostel will come up in Jaipur and will follow Zostel' franchise model. The properties — villas or apartments being developed by Leisure under the resitel concept — will be open for sale and transfer of ownership. They will be in locations such as Bhimtal, Nainital, Rishikesh, and Naukuchiatal. The construction at select few sites is likely to commence in the next two months. Leisure Hotels is also looking to invest INR 160 crore by the end of 2021. At present, the group operates 27 boutique properties with around 875 rooms in India. Besides, it will also be adding 70 rooms in an existing property in Naukuchiatal during this span. Out of the nine properties in the pipeline, three will be managed by the group while it will own and operate the rest six.
The new properties will be coming up in Greater Noida, Dehradun, Haridwar, Bhimtal, Manali, Rishikesh, Pench and Kanha, among others.