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Old 13th March 2007, 00:52   #1
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Default Motels to come up across Indian highways

Several US-based budget and economy hotel brands such as Super8 Motels, CountryHearth, America’s Best Inns and Best Value Inn are set to enter the Indian market through the franchisee route.

Super8 is a roadway product. The highways and the national corridor that are currently being developed across the country offer a great opportunity to introduce this brand in India,” There are plans to position both Days Inn and Super8 brands on the Indian highways, with the average room rates ranging between Rs 1,200 and 2,000 per night.

Several of such hotel brands are in talks with oil marketing companies whose outlets dot the Indian highways

Source:
US-based budget hotels plan India foray-Business of Brands-New@ET-News-The Economic Times
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Old 13th March 2007, 01:08   #2
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Reliance as always has taken a lead in this respect. Their A1 dhaabas and some other top end pumps on the highways are already planning on these lines since last 2 years. I guess they have started some preliminary executions as well.

Although I wonder how big a success a 1200 to 2000 rupees a night thing will be. Until the Indians take on the highway driving concept as seriously as the americans it won't have a very high occupancy rate at such stiff tariff.
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Old 13th March 2007, 02:06   #3
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Rs.1200-2000 is pretty expensive and on par with what some of the roadside motels charge in the US (US$28-50)! Not surprising though since even ordinary two or three start hotels in Chennai or Bangalore charge in excess of Rs.3000-5000.
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Old 13th March 2007, 02:34   #4
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Tata was supposed to get into this bed and breakfast type motels with some killer pricing and value. Havent heard more on that.
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Old 13th March 2007, 09:00   #5
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Quote:
Originally Posted by THE-U- View Post
Rs.1200-2000 is pretty expensive and on par with what some of the roadside motels charge in the US (US$28-50)! Not surprising though since even ordinary two or three start hotels in Chennai or Bangalore charge in excess of Rs.3000-5000.
Bangalore/Chennai hotel's rates are high because of IT. There have been always a shortage of rooms in these cities where IT companies provides, 15 days- 1month accomodation free after joining,

I got a good room in Udupi and way to Shimoga for just Rs350. The same room would have costed Rs2500-3000 in Bangalore.

If these hotel chain's have to succeed, They have to price it very competitively, in the range of Rs 300-600.
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Old 13th March 2007, 09:06   #6
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Quote:
Bangalore/Chennai hotel's rates are high because of IT. There have been always a shortage of rooms in these cities where IT companies provides, 15 days- 1month accomodation free after joining,
I wouldnt totally agree with that statement. Has anyone tried out Ginger on the EPIP road here in Bangalore? They have taken out some of the frills from the package and what you now get is VFM, with an air-conditioned 2 bedroom coming at about Rs.1500/-. interesting point is that its right within the IT corridors.
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Old 13th March 2007, 09:09   #7
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That is a good move. I was always worried about getting accomodation for long drives with family. But I feel 300-500 Rs for a double bed would have been ideal.
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Old 13th March 2007, 10:10   #8
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Well - the "Ginger" ads on TV are about the DIY biz hotels from Tata - i believe at abt 900/- a night.
On the highway - u cannot really beat the free khatiya after dinner for charm. 500/- be the right price tops - and ok given the real cheap real estate and dont-really-need-anything-fancy nature of highway motels in India - at least for the ones not too close to town.

Last edited by zenx : 13th March 2007 at 10:12.
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Old 13th March 2007, 10:51   #9
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Quote:
Originally Posted by Mpower View Post
Tata was supposed to get into this bed and breakfast type motels with some killer pricing and value. Havent heard more on that.
If Tata hasnt gotten into this, its a safe assumption about the direction the highway motel scene is headed.


Quote:
Originally Posted by rahul_intlad View Post
Several US-based budget and economy hotel

with the average room rates ranging between Rs 1,200 and 2,000 per night.
There's nothing remotely economical or budget abt that. For that kind of rate I'd rather stay in a developed city hotel. Rs 600-800 is something that'll make sense, particularly on a highway
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Old 13th March 2007, 11:11   #10
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Quote:
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Tata was supposed to get into this bed and breakfast type motels with some killer pricing and value. Havent heard more on that.
Well, Ginger chain of budget hotels are exactly that!! They offer good quality accommodation with good facilities and are priced below 1000Rs per night.
The rooms have LCD tvs, WiFi, Shower cubicles etc.. The only catch here is that they don't offer room service.
In Whitefield (Bangalore), they offer you the delivery service of Pizza Hut. Yes, you have to call Pizza hut and get your pizza delivered to your room if you want any kinda room service!!!
There are washing machines you can use for laundry at nominal charges. So no laundry service too. You have to take care of your own laundry.
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Old 13th March 2007, 11:17   #11
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Yeah, 2000 bucks for a night is steep. somewhere around 600-800 could be termed budget.
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Old 13th March 2007, 14:28   #12
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IOC already has highway motels, and the room for 2 costs 600/night. I think thats the right rate if they are serious about highway motel business
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Old 13th March 2007, 15:16   #13
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I think 500-600 is the best price.

How many people who can afford >800-1000 travel on highway during nights? Only if we didn't had our great old Indian railways.

But having decent motels may drive more and more people to travel long distances by car.
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Old 14th March 2007, 02:35   #14
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Quote:
Originally Posted by speedzak View Post
Well, Ginger chain of budget hotels are exactly that!! They offer good quality accommodation with good facilities and are priced below 1000Rs per night.
The rooms have LCD tvs, WiFi, Shower cubicles etc.. The only catch here is that they don't offer room service.
In Whitefield (Bangalore), they offer you the delivery service of Pizza Hut. Yes, you have to call Pizza hut and get your pizza delivered to your room if you want any kinda room service!!!
There are washing machines you can use for laundry at nominal charges. So no laundry service too. You have to take care of your own laundry.
Thanks for the info Zak. Looks like its been modelled like the American system where labor costs are high. But in India, it not so so it might make sense to add these features.

Highway travel by car is yet to take off (in India) in a big way, but with the completion of the G.Q and the arrival of 25kpl common rail diesels, I see more and more people taking up the option.

Last edited by Mpower : 14th March 2007 at 02:38.
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Old 14th March 2007, 12:03   #15
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Oh. The thought of 25kmpl CRDI!
When is MUL launching the Baleno VDI?

The SWAGAT chain of fuel pumps/motels run by IOC/BP are great place to spend a night in highways. Rooms start from Rs300 per night. All basic facilities are available at nominal rates too. Chemist, mini provision store, restaurant, children's play area, showers, car wash etc.. Some even offer Ayurvedic massage centres!

I've had very bad experiences at Reliance A1 centres. The staff quality is simply not upto the mark.
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