Sangu Chakra Hotels plans Rs.400 crore expansion with beach resorts and city hotels

Beach resort in Rameswaram, star hotels in Chennai, Tiruchirappalli (Trichy), and heritage properties are on the drawing boards of the Sangu Chakra Hotels Private Limited involving a total outlay of about Rs.400 crore, said a top company official.

The 50-year-old Rs.150 crore hospitality major with four hospitality properties, Trichy,. Madurai (under Courtyard Marriott brand), Thanjavur, and Chettinad- with a combined inventory of about 280 rooms in planning to double it in a couple of years, the official added.

“After city and heritage properties, we are planning to venture into the leisure segment with a resort in Rameswaram. We have picked up 30 acres of land there with white sand. The proposed property will have themes around the Indian epic Ramayana,” V.Vasudevan, Managing Director said.

The project capex could be between Rs.150-175 crore with each room taking about Rs.1.25 crore, Vasudevan added.

“We are yet to decide on the brand – whether it would be our Sangam brand or any other international hospitality brand. The property will have over 100 rooms in different clusters,” C. Murali Krishnan, Executive Director added.

“We will be hiring the local talent for the Rameswaram property. In locations like this, having local talent will be a great asset. This has been the experience with a beach resort near Chennai,” Ravi Pillai, Group General Manager remarked.

According to the officials, several hospitality groups have acquired land in Rameswaram sensing a big leisure tourism potential and the property will come into existence in a couple of years.

Be that as it may, for Sangu Chakra Hotels, the first expansion project will be in Trichy with 125 room property.

“The business is good and the city needs more star hotel inventory. In three months we will start work on the project and in two years time, the property will come into the market. The hotel will be run under one of the Marriott’s brands,” Vasudevan said.

The company is also looking to venture into the Chennai market with a property in the city’s southern part. It will be a greenfield project, said Krishnan.

“Chennai is the feeder market. In 1975 the family had the option of buying land to build a hotel in the heart of Chennai or in the home town Trichy. The decision was in favour of the hometown, thus the Sangam Hotel catering to foreign tourists came into being. And the land in Chennai later housed another star hotel,” Vasudevan said.

The group’s first expansion came in 1995 with a property in Thanjavur when the World Tamil Conference was held there. In 2002, the group entered Madurai city by taking over an ITDC property. Later in 2008, the group restored a palatial Chettinad house-Chidambara Vilas in Kadiyapatti village in the Karaikkudi region.

The Trichy and Madurai hotels now operate under the Courtyard by Marriott brand.

Agreeing that many hotel properties are being turned into residential apartments and hospitals the promoters Sangu Chakra Hotels are keen on their core sector and not venturing into unrelated fields.

“We may look at venturing into related sectors like processed foods and others,” V. Akshay Ram said.

 “Our passion is on creating a product and offering an experience to the people,” Krishnan said.

Queried about the source of funding the new investments, Vasudevan said it will be primarily from bank debt and internal accruals. The group may also look at other funding sources like the initial public offering or venture funds.

Meanwhile Sangu Chakra Hotels is celebrating its Golden Jubilee at all its properties.

Apart from several events as part of the Golden Jubilee celebrations, the hotel will also serve many of the erstwhile Sangam Hotels’ popular dishes.

“Sangam Hotel, Trichy had several signature dishes. Some of them have been included in the menu card of the property after its relaunch under Marriott management,” Krishnan said.

According to him, between 4-26 of January 2025, the Trichy hotel will offer most of the signature dishes offered by Sangam Hotel.

“Apart from our signature rice dishes like curd rice and others, we will be offering Dosa Cassata – like the cassata ice cream, the dosa will have three different coloured layers- as part of the 50 years of Sangam Hotel celebrations,” Krishnan said.