GD Group Makes a Big Foray into the Hospitality Sector

Bengaluru-based GD Group has announced its major push into the hospitality sector with a plan to open as many as six properties by the end of 2019 under the brand name of Great Destinations Hotels and Resorts.

The Rs 1,200 crore turnover group is looking to capture the growing segment and intends to have a pan-Indian spread on acquisition and lease models.

The company chose to make a foray into the hospitality sector as the GD Group has a foundation rooted deep in services. It has ventures in retail, education and healthcare.

Great Destinations Hotels & Resorts CEO and Founder, Mr GD Balaji 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. Mr Balaji 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.

“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. The group has major plans of penetrating other market segments and will work towards a planned and fast expansion of the business,” Mr Balaji said.

Great Destinations’ will have two categories of hotels. One brand will cater to the premium segment and three other hotels that will come up by mid-2019 has been targeted at the budget traveller. The premium segment brand, Vividus is meant for the young, tech-savvy and trendy traveller. The other three associate brands under “My Space’ product focuses to be a light- on-the-pocket service with world-class amenities.

Vividus, along the Race Course Road in Bengaluru, is just 45 minutes away from the international airport and plans to engage with all segments - from business travellers to explorers and from backpackers to business tycoons.

By the end of 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 leased & managed options for which we are in discussion with various stakeholders,” Mr Balaji announced.

“I have been very passionate about increasing our foot-hold in the hospitality sector. The current scenario has seen the growth of 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,” Mr Balaji 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 & 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,” Mr Balaji said