Chennai, Aug 17 (IANS) New five-star hotel Feathers, part of the Radha Group of Hotels, is confident of ramping up its occupancy levels to 50 per cent in two months time with a couple of corporate tie-ups, a top official said.
“We are targeting corporates located in Sriperumbudur, IT companies and others located nearby. We will achieve cash break-even two months down the line,” R. Srinivasan, Managing Director of the 186-room hotel, told reporters here.
The hotel is in talks with several corporates and some multi-national automobile companies have shown keen interest in signing up for rooms, added Rupam Dutta, General Manager of the hotel.
The Radha group, which has an annual revenue of Rs 45 crore, consists of five three-star category-one hotels — three in Chennai and two in Bengaluru.
“It is not to satisfy any ego that we have gone for Feathers in five-star category. The decision is based on return on investment numbers. With real estate prices on the high side, it is difficult to sustain a budget hotel in the city while a five-star hotel gives better returns on investment,” Srinivasan said.
He said Feathers hotel involved an outlay of around Rs 220 crore of which around Rs 109 crore was funded out of internal accruals and the rest through bank debt.
Dutta said attention has been paid to small aspects like installing anti-fog mirror in the bathrooms so that the guests are not inconvenienced in any manner.
“All the five categories of rooms have the anti-fog mirror so that a layer of vapour does not cover the bathroom mirror after a guest takes a hot shower,” Dutta added.
The hotel, with a big banqueting space, is expecting to obtain the licence to operate the bar soon.
According to Srinivasan, Feathers’ room rent, and food and beverage revenue will be in the ratio of 40:60.