Keys to expansion

IHCL wants to become the ‘superstar’ of India’s hospitality industry, and is looking beyond suite spots

- AKSHARA SRIVASTAVA

India needs an all-inclusive hospitality brand, says Puneet Chhatwal, managing director and chief executive officer of Indian Hotels Company (IHCL), the country’s largest hospitality chain.

He is determined to turn IHCL into that brand.

The company is growing like never before, and is also on an acquisition spree. Its portfolio spans upscale, mid-scale, and budget hotels, and, of course, there is the crown jewel — Taj Hotels.

The growth strategy, however, goes beyond Taj, and builds on a landscape that has changed since the Covid-19 pandemic. What began with revenge travel (a near-forgotten term now) as the world opened up after the pandemic has matured into a consistent desire to travel both within and outside of India. The robust growth in domestic travel and a booming economy have now created a situation where demand outpaces supply.

According to Hotelivate, a hospitality consultancy, India has about 200,000 branded hotel rooms. This number is expected to grow to 300,000 by 2030 as hotel chains — both domestic and international — expand their presence in the subcontinent.

Little wonder then that Taj Hotels’ parent company is stepping on the gas and expanding its bouquet of brands.

Branching out with boutique

At IHCL's 124th annual general meeting in July, Tata Group Chairman N Chandrasekaran said acquisitions would be key to driving growth, especially in locations where large properties are not viable and where supply is limited.

“Expansion is possible only if we have the right property,” he said. “India is a major opportunity for tourism and there is a dire need for good quality hotels in the country — not just palace and business hotels, but also those required in hill stations and religious areas.”