KARACHI: Avari Group has decided to develop Avari Xpress three- and four-star residences and boutique hotels in secondary cities of Pakistan on a lease basis.
Avari Group Chairman Byram D Avari while talking to journalists on the sidelines of a press briefing on Thursday informed that two such properties already exist in Islamabad. “We’ll have two more Avari Xpress properties in Lahore soon,” he said, adding that the group also planned to have similar properties in Faisalabad, Gujranwala, Multan and Sialkot.
The Avari properties provide all room amenities that are provided by their larger counterparts, including gym, restaurant and meeting facilities. However, they are limited in the food service and without a swimming pool and banquet facilities. Avari noted that Hyderabad did not apparently have enough demand to justify the establishment of a full-fledged Avari hotel there. However, he said he wanted to set up a three-star in Hyderabad. He added that Sukkur seemed more feasible for a four-star Avari hotel.
Avari Xpress residences and boutique hotels are being established as joint ventures, he said. Under the management/lease basis, the owner sets up the entire hotel and gets a percentage of room revenue as lease money for a period of 20 to 25 years. The eventual profit and/or loss is the responsibility of Avari Hotels International. This ensures that the owner gets a guaranteed stream of income without having to worry about the expenses.
Published in The Express Tribune, May 4th, 2012.