After establishing a strong presence in north India, Uttar Pradesh-based Clarks Group of Hotels, which runs the Clarks Inns and Clarks Exotica resorts, is now looking at expanding in the south. Cashing in on the success of its Bangalore property, the company plans to set up premium resorts in south India.

Said Vivek Vinod, general manager of Clarks Exotica, “We are looking to set up five properties over the next two-three years, primarily in the southern market.”

The Clarks Exotica brand comprises the premium properties of the group, while Clarks Inn consists of business hotels. The company has two Exotica properties, and is working on the third one in Bangalore. “We have 90 rooms in our Bangalore property and have commenced work on a block to add 53 rooms by the end of this financial year. We are investing Rs 25 crore on the new block,” Vinod said.

Clarks Exotica contributes about 25 per cent to the group’s overall revenue. For the financial ended March 2011, Clarks Exotica reported a turnover of Rs 14 crore and Vinod said that this fiscal, it will contribute about Rs 16 crore to the group revenue.

The group has Clarks Inn hotels in Delhi and NCR, UP and Rajasthan, and Clarks Exotica properties in Bangalore and Goa.

Speaking about the Inn properties, Vinod pointed out that they are mostly franchised. “We have 14 Clarks Inn properties in the north and we are in talks to tie up with a few more players for managing their properties. The company is not looking to own any property since managing them is more profitable,” he said.

Since the cost of purchasing a property is not involved, the expenditure is not high, and this translates into good gross operating profit, he added.