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‘Our target market will be informal workers’

Chototel is being launched as a chain of super-budget hotels starting at US$ 2 per day with uninterrupted utilities and social infrastructure such as crèches and community kitchens. Rhea Silva, founder and managing director, Chototel talks about the pilot project in Nagothane, on the new Mumbai-Goa Expressway. By Sudipta Dev

What is the brand concept of Chototel and what demand does it fulfil in the Indian hospitality sector?

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Rhea Silva

Chototel’s brand concept is the super-budget hotel, positioned between social renting and affordable housing. Chototel aims to respond to the demand for affordable housing from ordinary individuals and families moving towards urban clusters.

Where are your existing/ upcoming properties?

Chototel’s pilot project is based in Nagothane, 75 km outside of Mumbai. There were two main reasons for choosing Nagothane as our first site. Firstly, the site is situated on the new Mumbai – Goa Expressway. This location enables us to take advantage of the passing tourist traffic and increase income received from providing secondary amenities, such as food and beverages. Secondly, the Raigad industrial belt has over 50,000 informal workers. Consequently, there is a high demand for clean, affordable and temporary accommodation in this area. Our second project is targeted near Pune, one of India’s fastest growing industrial corridors, predicted to create over 50,000 additional jobs over the next decade. In India, we intend to expand to locations in Ankleshwar, Hyderabad, Chennai and Bengaluru. Overseas, we are also looking at  Bristol in the UK and Ajman in the UAE.

Your expansion plans. Is there a focus on any particular region/ state?

Our plans for expansion are to have a presence in fast-growing urban centres where the demand for affordable accommodation is predicted to rise within the next decade. As such, we are initially
targeting locations around Mumbai, Ankleshwar, Bengaluru, Hyderabad and Pune. A similar demand can be seen in other developing regions such as Nigeria and China, where rapid urbanisation is causing young working people to move towards cities in search of better career opportunities.

Are all your projects greenfield? What kind of tie-up are you looking at for expansion?

All our projects are greenfield. Presently, we are working independently; however, in the future, we are open to partnering with organisations which share our vision.

Which is your target market?

Generally, our hotels are expected to appeal to a wide demographic of individuals and families who are currently affected by housing shortages and are in need of affordable accommodation. At Nagothane in particular, the target market for our hotels will be the 50,000 informal workers who work in the Raigad industrial belt. Our robust social infrastructure – including a crèche, children’s play area and community kitchen – is designed to appeal to the families and non – working  dependents of these workers.