Kamat to add 40 business hotels in smaller towns

MUMBAI, Nov 23 (Reuters) - Kamat Hotels (India) Ltd (KAMT.BO: Quote, Profile, Research) plans to add 40 business hotels in the next five years in tier two towns and villages to benefit from being the first mover, its top official said on Friday.

The 'VITS' hotels would come up in Maharastra, Goa, Gujarat and Madhya Pradesh under the models of ownership, long-leases, franchise and operation, Chairman Vithal Venkatesh Kamat said.

He said there was a niche especially in district headquarters of each state and, "that gap we are going to bridge."

"Most of them are places with enough tourism potential, but at the same time there is a potential also for business."

Kamat plans to have 36 such hotels with pool, gymnasium and restaurants in Maharashtra.

Each 'VITS' hotel would have 80-120 rooms, and would cost the chain about 2 million rupees per room, said Kamat.

Kamat Hotels also has plans to launch heritage hotels under the brand name 'Gadh' in December. The first in Pune would initially have 48 rooms, he said.

By 2010, the hotelier expects to have six heritage hotels.

"We have internal accruals, at the same time we have the financial institutions with us. Money is not a problem." (Reporting by Jasudha Kirpalani, editing by Harish Nambiar)