Grand Continent Hotels Ltd, with its registered office in Chennai, is accelerating expansion with a focus on corporate travel and pilgrimage tourism, while continuing an asset-light model with an emphasis on profitability. The mid-market hotel group, which will complete 15 years next month, operates 28 hotels and another 10 in the pipeline in the near term. Ramesh Shiva, founder and MD, in an interview speaks about the business model, demand trends and future expansion strategy. Excerpts:How was first half of FY27 for the group and the mid-market hotel segment?April and May were relatively weak, but business picked up from June and remained good through Sept. Occupancy rose, from around 62% in the first two months to about 70% during the next four months of H1FY27. Revenue was around `55 crore in the first half of last year. This year we have grown by more than 30%, driven by an expanded footprint and better occupancy. While we opened four to five more hotels, which contributed to growth, demand has been good. We have expanded in cities such as Gurugram, Hyderabad, Chennai and Bengaluru. This allows corporates to work out packages for the entire year.How important is pilgrimage tourism?Pilgrimage is where we see strong demand. We are opening hotels in about 12 pilgrimage centres in the second half of this year. Our business mix is roughly 60-65% corporate, 30% pilgrimage and 5% leisure. Pilgrimage is attractive as it is a year-round business. At many destinations, guests typically stay one night, but there is a continuous flow of customers. We are not in a hurry to open a large number of hotels. We proceed only if we are confident that it will generate returns.What new properties are coming up in the near term?The pipeline includes properties in Somnath, Ayodhya, Varanasi, Rishikesh and Vrindavan. We are also developing a 122-room hotel in Devanahalli, near Bengaluru airport, and another property near EVP Film City in Poonamallee, Chennai.What are your long-term expansion targets?We operate 28 hotels in India and have 10 in the pipeline. By March 2027, we expect to have 41 hotels with approximately 2,700-2,750 keys in Indian and overseas properties. Our objective is to have between 3,000 and 3,500 keys by 2028. That year, we will complete three years as an SME-listed company, after which we can migrate to the main board. Our vision is to have a minimum of 50 hotels. We are almost there. If we have 41 hotels by 2027, adding another eight or nine should not be an issue. All the hotels we started with are still operating.What is your perception of Tamil Nadu’s hotel market?Tamil Nadu is seeing new hotels and brands coming up now. But Bengaluru and Hyderabad are far ahead of Chennai. The present state govt is opening its arms to new companies and encouraging growth and investment. This could create better opportunities for all of us.What are opportunities in TN’s tier-2 cities?Tier-2 cities in Tamil Nadu are picking up well, but we also have to be cautious. In some locations, supply is high while demand is not strong enough. Rameswaram has been a huge success for us. We are now looking for properties in Madurai and Trichy. Salem is another city we would consider if we find the right property.How important is local talent in your hotels?Local employees can be an excellent source of talent. Take Rameswaram, for instance. Many of our employees there are from the same town, and they feel a strong sense of ownership towards the hotel. What they value most is being treated with respect and dignity. They also recommend friends, making word-of-mouth an effective recruitment channel. Retaining people is a challenge, particularly in the hotel industry, but it is essential because this is a people-driven business.
