From a struggling asset to a thriving business

...Himalayan Hotels has grown 25X in revenue. Tarun Gulati, Director, Ganga Kinare Resorts & Hotels, parent company Himalayan Hotels, shares his success story.

- 

What were the initial challenges you faced when taking over Himalayan Hotels? And how did you transform a struggling asset into a thriving business?

When I took over majority ownership of Himalayan Hotels in 2012, it was a small company with just one struggling asset - Ganga Kinare. The hotel required major renovations, was not operationally profitable, and suffered from poor reviews, causing it to lose both clients and travel agents. Additionally, the company’s shareholding structure was disorganised, existing loans needed repayment, and professional management was lacking. On top of that, I had no prior experience in hospitality or running a business - I was only 28 and had been a working professional until then.

In the initial years, my focus was razor-sharp on guest feedback, resolving even the smallest operational bottlenecks, and improving service standards at the ground level daily. I also made it a point to personally meet over 100 of India’s top inbound tour operators, as Rishikesh at the time was primarily sold through them - online travel agencies were not yet significant. Slowly, we started seeing early signs of growth.

It took three years to streamline and organise the company’s shareholding structure, repay old loans, bring in fresh equity, secure better loan financing, and revamp our marketing approach. During this time, we also built a strong team and, by the third year, we began seeing consistent profitability and a solid return on our investments.