The hotel was started as a partnership firm in 1965, when its promoters, A. Venkatakrishna Reddy, M. Ramaraghava Reddy and A. Shyamasundara Reddy, with considerable experience in the real estate and hotel business, acquired land measuring approximately 5,000 square metres in Mylapore, a prime locality in the city, to build a hotel with 20 rooms and a restaurant. In 1969, the promoters established a company under the name 'Savera Hotels Private Limited' to meet the needs of their growing business. In 1971, the partnership concern sold 1,757 square metres of its land to Savera Hotels Private Limited, which subsequently also acquired 4,684 square metres of land around the original hotel. In 1972, when the company started operations, 125 rooms were added to the hotel and the original 20 rooms were converted to build the hotel office and conference rooms. Accessories like the swimming pool were already constructed, an idea which was not common with the hotel industry in the city then. In 1975, Minar Restaurant, an exclusive restaurant serving Moghlai food, was opened.