After undertaking massive makeover for its flagship hotels in Delhi, The Ashok and Janpath, state-owned ITDC on Thursday said it has extended the 'Ashok' brand to six more hotels.

ITDC has signed a MoU with six hotel properties in different states to extend its brand under the newly launched Ashok Alliance scheme, thus allowing hotels to add 'Ashok' brand in its name.

The MoU was signed with a five-star hotel in Manesar, a four-star hotel in Kolakata and four three-star hotels in Nagpur, Malout, Jodhpur and Bhiwandi.

In fact, taking a leaf out of the private hotel chains, ITDC is keeping its capital cost to the minimum.

“We have been disinvested, so we cannot invest. Since we can’t open our own hotels with our own money, we are getting hotels under our brands,” says Kuldip Verma, Sr. Vice President (Corporate Marketing).

Standalone developers are welcoming the franchisee agreement with ITDC, because brand recognition commands a better room rate and they are hoping for getting some good business from babus travelling to these locations.

“We shall be giving ITDC 3 per cent franchisee fee on the room revenue,” said Bharat Rattan Grover, owner of Hotel Welcome City Beautiful, Chandigarh.

In times of a slowdown, ITDC has managed to buck the trend. It is now trying to de-risk its business by employing less capital as it expands.