New-age hotels go light to take on big chains

Alivaa Hotels has signed three properties and targets to reach 50 in the next five years.

- Varuni Khosla

Barely 10 months old, Alivaa Hotels is part of a new breed of hospitality ventures charting out ambitious plans. It has already signed three properties and targets to reach 50 in the next five years. The company is betting on growing demand, and an asset-light model: leasing properties, much like renting a home.

The new arrangement, instead of the prevalent practice of setting up properties and hiring firms to manage them, keeps Ananta Capital-backed Alivaa's finances strong and ensures stable and predictable returns for hotel owners. It owns one property each under its Alivaa and The Hoften brands in Gurugram, and an Alivaa resort will soon open in Jim Corbett area of Uttarakhand.

Founder Vikramjit Singh, previously the president of Lemon Tree Hotels, is betting on the new approach to stand out in India's competitive hotel market.

Singh's company is among the small but growing group of new-age hotels, including Cygnett Hotels and Resorts, Brij Hotels, and Signum Hotels, looking to challenge the dominance of Indian Hotels Company Ltd (IHCL), the owner of Taj chain, and Oberoi and Marriott-branded hotels groups. The confidence reflects momentum in leisure and business travel after the pandemic. And better return on investments. According to a report by hospitality consultant Hotelivate, the number of hotels charging an average room night rate of ₹7,500 or more has increased from 23% (354) in FY23 to 30% (517) in FY24.