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Friday, December 16, 2011, 13:00 Hrs  [IST]

VITS to adopt franchise route for expansion

VITS, the four-star luxury business brand by Kamat Hotels India Limited (KHIL), plans to adopt the franchisee model in order to expand its hotel portfolio in India. VITS will enter into franchise agreements with independent hoteliers to revive and grow their existing units and simultaneously help standalone hoteliers earn higher ROIs. Initially, the company will focus on Mumbai, Gujarat and Goa for the new business model and plans to have six hotels under their franchise portfolio in the next one year. These hotels will be a mix of existing and newly-opened properties.

Vikram Kamat, Executive Director, KHIL informed, “KHIL has owned and managed properties for years. Of the seven VITS hotels operational in India, Delhi, Bhubaneswar and Aurangabad are managed whereas the properties in Mumbai, Pune, Nashik and Nagpur are owned and managed by us. Besides owning and managing our family restaurant brand Vithal Kamats, we have rolled out the franchise mode for our restaurants and hence want to follow the same for our VITS properties. With KHIL having its presence in Maharashtra, Gujarat and Goa with 28 units (including hotels and restaurants), we want to focus on these three locations in the first year.”

Speaking about their new operation model, Kamat said, “Unlike regular franchise agreements, we don't charge fixed royalty on the turnover; a monthly commission on the number of rooms will be charged.”
 
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