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Calcutta, Feb. 17: Keys Hotels, the flagship hospitality brand of New York-based asset manager Berggruen Holdings, is looking to expand in the country through the franchisee model.
At present, Keys Hotels operates through 12 properties in India that include company-owned hotels and management contracts. It is looking to add another 10 properties under these two models by the end of 2013-14. The company plans to have 50 additional properties under franchisee operations within the next four years.
In the franchisee model, only the brand name is shared. The model is different from management contracts where the developer builds the property and engages a manager to supervise the operations.
Sanjay Sethi, managing director and CEO of Berggruen Hotels, said franchisee operations would help to tap the unorganised hotel industry and increase the presence of the brand in India.
“Franchisee models essentially works through revenue sharing where a part of the revenue earned by the hotels is shared with the brand owner,” Sethi said. He said in the franchisee model, the brand owner usually undertook periodical audits to assess the performance of the hotel.
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