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GD Group enters hospitality; Plans to open 6 properties by end of 2019
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Friday, 28 December, 2018, 13 : 00 PM [IST]
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Our Bureau, Bengaluru
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 Bengaluru-based GD Group, which has forayed into the hospitality sector with the launch of the premium brand Vividus, plans to open as many as six properties by the end of 2019 under the brand name of Great Destinations Hotels and Resorts.
The group, which has ventures in retail, education and healthcare and whose turnover amounts to Rs 1,200 crore, is looking to capture the growing segment and intends to have a pan-India spread on the acquisition and lease models.
G D Balaji, chief executive officer and founder, Great Destinations Hotels and Resorts, clearly believes in a vision of becoming a premium global conglomerate with clear focus on each and every business vertical being the group’s ethos.
He felt this was the right time to expand their reach into the hospitality industry, with the launch of two brands simultaneously under Great Destinations Hotels and Resorts.
One brand (Vividus) will cater to the premium segment, and three other hotels, that will come up by mid-2019, has been targeted at the budget traveller.
Vividus is meant for the young, tech-savvy and trendy traveller. The other three associate brands, under My Space, will be light on the pocket.
“We are not new to the hospitality sector, as the family-owned group was already operating a large star hotel in the heart of Bengaluru. We have completely demolished it, and a brownfield hotel is coming up in its place,” Balaji said.
“The group has major plans of penetrating other market segments and will work towards a planned and fast expansion of the business,” he added.
By the end of financial year (FY) 2019-2020, the GD group is looking at establishing 14 properties under its portfolio.
“A majority of these additions will be either through franchisees, managed or leasedand managed options, for which we are in discussion with various stakeholders,” Balaji said.
“I have been very passionate about increasing our foothold in the hospitality sector. The current scenario has seen the growth of the gross domestic product (GDP), with the tourism sector increased at a steady rate. I feel it is the right time to make a concerted move since domestic tourism numbers have increased,” he added.
Great Destinations Hotels and Resorts is keen on a rapid growth trajectory and looking at growth from both the models (managed as well as franchised), and expansion plans follow with 40 hotels within a span of five years or less.
The group has identified Tier-I and II cities where demand is growing. It is already in the process of identifying units in heritage sites, pilgrimage cities and in towns known well known as commercial business hubs.
“We have kept all our options open. Initially, we had thought of co-branding with an international chain. However, over a period of time, the group management realised that the new-age traveller looks forward to smart travelling. There are very few brands that fit into this particular segment,” Balaji said.
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