Tata Group is planning to increase its number of budget hotels to over 70 from 25 at present in the next few years, taking advantage of the potential in the hospitality sector.
"Our target is to raise the number of our Budget hotels to atleast 70 from 25 at present in the coming three to four years", Roots Corporation CEO Prabhat Pani told PTI.
Tata Group's associate Roots Corporation operates chain of budget hotels all over the country.
"Out of these, 25 are already operational and preparations are underway to begin construction of about 40 other such hotels", he said.
Besides, work has already begun for seven other budget hotels in various destinations, Pani added. However, the company refused to divulge the details of expenditure in the expansion plan.
Roots Corporation is the wholly-owned subsidiary of Tata Group's associate company Indian Hotels Corporation Ltd (IHCL) and operates the 'Ginger' chain of hotels.
The firm on Thursday opened a budget hotel of 95 rooms in Indore, the capital city of Madhya Pradesh with an investment of Rs 11 crore.
Pani said: "Budget segment of the hospitality sector is new in India. And there is enough potential for expansion and growth in this sector. We believe that there will be a range of such chains of budget hotels in the country in the coming years."
He said there will be fierce competition in the market due to the growing travel and tourism industry in India.
RCL currently operates Ginger hotels in Agartala, Ahmedabad, Bhubaneswar, Goa, Haridwar, Jamshedpur, Ludhiana, Delhi etc.