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Serviced Apartments are the next big thing! I have been saying it for a long long time and do believe that with more professionalism coming into this sector, professionals who are specialist in this sector will stand to gain. Here's a company that is on fire..... Having established itself as a leading branded serviced apartment chain in India in less than six months, Mumbai-based Signature Crest is set to go international. Promoted by TravelOrg - a travel company specialising in religious, adventure, medical and lifestyle tourism, the fairly new hospitality division plans to have over 10 international destinations under its serviced apartment business network. Speaking exclusively to DNA Money, Venkatesh Rao, promoter of TravelOrg and CEO of The Signature Crest, said that Asia, Middle East and Europe will be targeted initially with other destinations being added at a later stage. “To start with, we intend to have presence in Colombo, Dubai and London in the coming few months. By the end of this financial year we would add another 8 to 10 new locations to our international portfolio,” said Rao. Though growing consistently, the concept of service apartments is still at a nascent stage in India and is primarily in the unorganised market. Some of the Indian and international brands operating in this accommodation category include Marriott International, Hyatt International, The Indian Hotels Company Ltd (IHCL), while others like Hilton Hotels, Oberoi Group, Leela Hotels etc are expected to join the segment soon. According to a hospitality sector analyst, the market for serviced apartments in India is expected to grow rapidly with more and more branded players entering the segment to bridge the demand-supply gap. “Globally the concept of serviced apartments has been very popular. India is all set to see a massive boom in this segment especially from the corporate sector. In fact, the demand for such fully-furnished service apartments is astounding. In most metros, 12% to 18% of the hotel business is extended stay. Also 20% of the corporate travellers stay at company guesthouses or the company’s private homes. So the potential is huge as of today and will only increase in the future,” said the analyst. The Signature Crest has also identified other cities like Hong Kong, Melbourne, Sydney, Miami, Muscat, etc. While presence in these markets will be through a combination of owned, long-lease and franchise options the management primarily use the affiliate route, wherein the promoters will enter into a reciprocal arrangement with serviced apartment operators in these international destinations on a revenue sharing basis. “Thus the corporate clientele using our facilities in India can book with our international affiliates when travelling overseas for less than $100 a day,” said Rao. Launched in November 2006, The Signature Crest has already set up a network of 25 properties in major Tier I and II cities and tourist destinations across the country. Around 15% of the company’s current serviced apartment portfolio is through franchise agreements while the balance is a mix of owned and long-lease with majority falling in the long lease category. In sync with the company’s international expansion are plans to beef up the domestic presence. “In the next 12 months, we will add 20 destinations taking the total number to 45 serviced apartments across the country,” said Rao. Having invested close to Rs 5 crore in setting up the present network, the promoters envisage an investment of Rs 25 crore for their domestic and international expansion plans. “In addition to internal accruals, other funding options like debt, private equity placement will be considered to meet the financial requirements,” said Rao. | Daily Extras! Eclat Me | Success Tip of the Day| 1DailyDiversion| Eclat Web - Must Visit Websites! A Beautiful Pic Every Day! Word of the Day| Quotation of the Day| Make Money! Immigration News! Desire- WOW Stuff! Stock Mkt Updates |
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