Brij Hotels, a collection of boutique luxury hotels in the country, has raised funds of a total deal size of approximately USD 4 million in a Series-A round led by Dr Ranjan Pai, chairman of the Manipal Education & Medical Group Family Office, with Other notable participants were Abhay Jain, Abhiroop Jayanthi of Bain Capital, Rajendra Rao and Prashant Deshpande.
The company had earlier raised funds through an angel round where notable investors included Jaideep Hansraj of Kotak Securities and Pramod Kabra of True North.
Speaking to ET HospitalityWorld, Anant Kumar, co-founder of the hotel company said that they have been able to build a profitable business in Brij Hotels and they want to take it forward aggressively and invest more heavily in identifying right locations and expanding the footprint. “70 to 80 percent of the raised funds will be utilized for growth and expansion,” Kumar said.
Brij Hotels operates 8 hotels currently and 3 more are in the pipeline in the coming financial year. These new locations are Ranthambore, Bandhavgarh and Pokhra (Nepal), he informed.
He said that they believe in delivering boutique luxury experiences to discerning guests and therefore only operate properties which are 30 rooms and below. “We have set a clear brand boundary. “We know that we will not be able to provide the desired luxury experiences to our guests if inventory size exceeds 30 rooms,” Kumar said.
The founders of the company have a target of reaching 50 operated hotels in the next 5 years. The model of expansion would be completely asset light, Kumar said. The company pursues two models – revenue sharing (variable lease model), and management contracts. “90 percent of the contracts will be leased and 10 percent of management contracts going forward,” Kumar said.
When asked about the investors’ interest in hospitality brands, Kumar said that the successful conclusion of IPOs by multiple hotel companies in recent months is testimony to the growing traction in hotel assets of investors. He said that the current funding requirements of the company can be thoroughly met with the round and in case opportunities arise, there are multiple investors ready to back that up at any given time.
Brij is a collection of bespoke hotels that offer heartwarming hyperlocal experiences, all while prioritizing sustainability. The portfolio includes BrijRama Palace Varanasi; Brij Lakshman Sagar Pali; Brij Gaj Kesari, Bikaner; Brij Villa Dalhousie; Brij Bageecha and Brij Nest – Jaipur; Brij Anayra Dharamshala; and Brij Pola, Jawai.