ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Railways
  • World
    • Economy
    • Politics
    • Markets
  • Survey
  • videos
  • photos
  • More ...
    • VIDEOS
    • PHOTOS
BREAKING NEWS
  • IRDAI sets a target of 5 years for life insurance companies for greater penetration; proposes state-level committee
  • Dalal Street Corner: Bank, FMCG stocks help Nifty clear crucial hurdle of 15,800; what should investors do on Tuesday?
  • Despite windfall tax, brokerages remain bullish on oil & gas stocks; see up to 70% upside on ONGC, Oil India
  • Rupee settles flat at 78.94 against US dollar
  • Akasa Air showcases crew uniform; conducts proving flight test
Read in App
Business News » Companies News

SaffronStays targets 1,500 rooms by 2020

"The average revenue per booking will be relatively high. Further, such travelers prefer to spend time with their family in an informal setup. In the case of star hotels rooms, the number of persons who can stay in a room is limited and there are restrictions like usage of swimming pool," a top official of a hospitality chain told IANS on the condition of anonymity.

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
SaffronStays targets 1,500 rooms by 2020
Saffron Studios Private Ltd plans to expand into overseas markets where Indians travel, Photo: saffronstays.com

Targeting 500 private vacation homes/about 1,500 rooms under its SaffronStays premium homestay network by 2020, Saffron Studios Private Ltd plans to expand into overseas markets where Indians travel, a top company official said.

He said the company plans to raise private equity of about $20-30 million in two years time and is also in talks with public/private sector companies to manage their holiday homes.

Presently Saffron Studios has 100 homestays in 40 locations in Maharashtra, Goa, Rajasthan, Himachal Pradesh, Uttarakhand, Tamil Nadu, Karnataka and Kerala.

"Adding about 15 homes per month to our network now, we are opening our offices across the country which in turn would increase the number of homes added to our network. So, the target of 500 homes, with an average three rooms per property, by the end of this year is achievable. The total number of rooms/keys under SaffronStays will be about 1,500," Devendra Parulekar, Founder, Saffron Studios told IANS.

Hoteliers are of the view that the premium/luxury homestay segment is growing and is also lucrative.

"The average revenue per booking will be relatively high. Further, such travelers prefer to spend time with their family in an informal setup. In the case of star hotels rooms, the number of persons who can stay in a room is limited and there are restrictions like usage of swimming pool," a top official of a hospitality chain told IANS on the condition of anonymity.

In the case of SaffronStays, the average revenue per booking ranges between Rs 20,000-24,000 with 75 per cent accounted by room rent and the balance from food and beverages.

"Our current revenue run rate is about Rs 2 crore per month," Parulekar said.

On the occupancy rates, Parulekar said SaffronStays is largely a weekend product for the family and the occupancy ratio is about 75 per cent. During the week, the homes are used by corporates for their conferences.

Saffron Studios business model is similar to hotel industry where the property owner allows the hospitality company to manage the property under its brand for a fee.

"The property owners have to upgrade their property to our brand standards. The average investment per room will be about Rs 5-7 lakh. For the owners who are high networth individuals the revenue yield will be about 6 per cent," Parulekar added.

According to Parulekar, the property churn ratio is about 2-5 per cent.

He said the company was not interested in looking at managing palaces of erstwhile Maharajas, zamindars and others as the focus is on private homes which are within two to three hours of driving distance for guests.

Queried about overseas foray, Parulekar said it will happen in 2021 in destinations where to Indians travel in large numbers like Southeast Asian nations.

"Nowadays Indians have the money and it is an important segment. We will have our homes within four/five hours of flying time. Ours will be focused on Indian guests," Parulekar said.

Asked about need for additional funding, he said the company has raised $2 million private equity from Sixth Sense Ventures diluting significant minority stake and may raise about $20-30 million in two years time.
 

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Indian travellers
Written By: IANS
Updated: Tue, Jun 11, 2019
01:35 pm
Chennai, IANS
RELATED NEWS
Budget 2019-What Travel Startups Want: Angel tax relief and softer GST rates Budget 2019-What Travel Startups Want: Angel tax relief and softer GST rates
Vacay alert! Top 5 nearby international travel destinations to beat the heat this summer Vacay alert! Top 5 nearby international travel destinations to beat the heat this summer
98% Indian travellers will prefer to stay in green accommodation: Report 98% Indian travellers will prefer to stay in green accommodation: Report
India's travel spend to grow 13 per cent to $136 billion by 2021 India's travel spend to grow 13 per cent to $136 billion by 2021
Delegation from Penang to visit India to boost ties Delegation from Penang to visit India to boost ties

LATEST NEWS

Air India alerts people about hoax communication; link offering Rs 6000, fake, says company

Global View: L&T, JSW Steel, Hindalco, and IndusInd Bank shares can give 30-61% return – Here is why

IRDAI sets a target of 5 years for life insurance companies for greater penetration; proposes state-level committee

PM Modi inaugurates Digital India Week, hails technology for its role in the pandemic

Anil Singhvi's Strategy on July 4: Support zone on Nifty is 15625-15700 and Bank Nifty is 33100-33200

Indian Railway opens sleeping pod hotel at CSMT

Will recession hit Indian shores in six months? Zee Business Managing Editor Anil Singhvi decodes

Moto G42 launched with Snapdragon 680 SoC at Rs 13,999 in India - Check full specifications and availability

Despite windfall tax, brokerages remain bullish on oil & gas stocks; see up to 70% upside on ONGC, Oil India

Suzuki Motorcycle launches 'Katana' in India today; Check price, features and more

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2022. India Dot Com Private Limited. All Rights Reserved.
LIVE TV