Keys Hotels, the flagship hotel brand of Berggruen Hotels Pvt. Ltd to use franchise model as part of its expansion strategy. This will enable it to grow and fuel its expansion plans of operating 52 hotels in India and abroad by 2015-16.
Building across its core competence in all aspects of hotel management this model will enable franchisees to access the experience and expertise of managing a hotel as well as the marketing and branding advantages in being part of the Keys hotels.
The company has been receiving proposal of various hotels for franchise agreement. In the franchise model the owner of the hotel will continue to manage his hotel. The associating hotels will be benefited by the Keys’ brand name and its various marketing, partnerships and sales initiatives to provide them exposure to national and international consumers and improve their revenues. Keys hotels will also provide the hotels with their advanced IT solutions such as centralized reservation systems, customer feedback systems to ensure an upsurge in the performance of the hotels.
Speaking on the new business model, Mr. Sanjay Sethi, Managing Director and CEO, Berggruen Hotels Pvt. Ltd. said, “With a strong portfolio of 31 owned and managed hotels across India and a highly skilled and experienced core management team, we have developed one of the largest sales force in the country and offer the best in class sales and marketing strategies. By franchise associations, we will be able to extend these high end resources to the large part of the unstructured hotel industry irrespective of their location, and help improve their top line revenues along with gaining deeper penetration of brand Keys in the country.”
He further added, “Our franchisees will be valuable to us and we will take utmost care while seeking franchise partnerships to ensure there is synergy in thought process and larger goals for both parties”
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