New Delhi: HRH Group of Hotels, owned by the royal family of Udaipur, is exploring management tie-ups with international and domestic hospitality brands for its heritage properties in Rajasthan.
The Group that owns and operates 10 properties, including hotels and resorts with around 600 rooms across the state, is also investing up to Rs 150 crore on renovation and expansion of its assets.
“We are currently in negotiations with big international and domestic hotel brands to give our properties for management,” HRH Group chairman and managing director Arvind Singh Mewar told PTI.
The Khush Mahal suite at the Taj Lake Palace Hotel in Udaipur, Rajasthan. Bloomberg.
He, however, declined to disclose the names of the global brands with which the group is in talks or timeline for executing a deal.
Mewar said the group might tie-up with other companies for 4-5 properties and the rest will remain self-managed.
On the reasons for HRH considering third party management deals, Mewar said: “Though we are a profitable company, tying up with other professional brands will help us become more profitable, and faster.”
One of the hotels owned by the group in Udaipur is already managed by Tata Group’s Indian Hotels under the Taj Lake Palace brand.
Meanwhile, the HRH Group is also investing around Rs 150 crore to renovate its properties.
“In the current financial year, Rs 100 crore is being invested in renovation of some of our properties and also to add extra rooms in a few,” Mewar said.
In the next fiscal, the group plans to invest another Rs 50 crore for the same purpose, he added.
The investment would be funded through internal accruals and bank loans.
He, however, did not disclose the group’s annual revenues and profitability stating it is a privately held firm.