Taj GVK plans Rs 300 crore expansion
Business Standard — April 26, 2006

Taj GVK Hotels will invest Rs 400 crore in the next 3-4 years to expand its chain in the country. The company has plans to set up new hotels of about 250 rooms in Chennai, Bangalore and Hyderabad. Besides, the company will be expanding Taj Krishna and Taj Residency in Hyderabad. The company will add 65 luxury residences and 125 luxury deluxe rooms to its 261-room property in Hyderabad. It will also expand the 151-room Taj Residency in Hyderabad by 125 rooms.

Currently, Taj GVK Hotels has got three hotels in Hyderabad and one in Chandigarh. "We are also looking at expansion in other metros as well as major markets," said GVK Reddy, chairman, Taj GVK. The company plans to double its room strength to 1,400 rooms by 2009-10 from the existing 700. Taj GVK Hotels registered a net profit of Rs 46.28 crore for the year ended March 2006, a growth of 109 per cent compared with Rs 22.09 crore reported in the previous year. The company posted Rs 189.39 crore in turnover, a growth of 63.26 per cent compared to Rs 116 crore reported in the previous year.

Taj GVK enjoyed an average room rate (ARR) of Rs 5,684 at its hotels in the March 2006 ended year as against Rs 4,247, the previous year. It enjoyed occupancy of 80 per cent during the current year as against 78 per cent the previous year.