Sarovar Hotels Target Religious Tourism in India

Uganda-based Madhvani Group and India's Sarovar Hotels and Resorts plan to establish mid-segment hotels in about dozen popular pilgrimage locations across India in a bid to tap the growing opportunity in the religious tourism segment, according to top officials of the two groups.

The alliance plans to open hotels in pilgrimage locations like Bodh Gaya, Rishikesh, Shirdi and Varanasi and aims at creating an organised pilgrimage hospitality circuit. The average size of the hotels in these destinations will be between 100-120 rooms.

"India is one of the foremost locations in the world for religious tourism and Madhvani Group is quite keen to tap this potential. In pursuit of this goal, we have already purchased land in Rishikesh and Bodh Gaya and are in advanced stage of acquiring land in Shirdi. We are also keen to expand our footprint in Varanasi, Katra, Dharamshala and Puri to cater to both the Hindu and Buddhist circuits," Roni Madhvani, Director, Madhvani Group said.

"Funding at all these locations shall be through combination of debt and equity but quantum shall be decided closer to the execution stage and shall depend on the cost of funds and availability," he added.

The Madhvani-Sarovar partnership opened its first new hotel in Tirupati recently. Described as India's first theme hotel inspired by the 10 avatars (incarnations) of Lord Vishnu, Marasa Sarovar Premiere, a 121-room hotel, aims to provide affordable luxury accommodation visitors. The company said the existing demand-supply gap provided an opportunity for it to establish a mid-range hotel in the holy town.

"Religious tourism is very strong in India but unfortunately lacked branded facilities in these locations. We hope to fill that gap by being in most cities. Religious destinations are only meant for mid-segment hotels and we intend to stay in that market," said Anil Madhok, Managing Director, Sarovar Hotels & Resorts.

Madhvani Group is looking at various religious destinations and Sarovar Hotels are set to be managing the properties on completion. The $500 million plus Madhvani Group is an industrial conglomerate in East Africa with diversified investments in Uganda, Rwanda, South Sudan, Tanzania and India.