New Delhi, April 9 -- Sarovar Hotels & Resorts will go ahead with a selective expansion spree in India's mid-market segment. While the chain crossed Rs.2,000 crore in revenue last year and is keen on further growth, its leadership wants to be choosy about locations to hedge against rising land costs and project delays.

The company, majority-owned by Europe's Louvre Hotels Group, is increasingly prioritizing tier II and tier III cities where infrastructure-led growth is outpacing the entry of branded players. "Growth for the industry overall is going to be much bigger in the smaller cities," Ajay K. Bakaya, chairman and director at Louvre Hotels India, told Mint. However, high capital costs and a shortage of hospitality talent are complic...