Demand for branded homes exceeds supply

IHCL, Marriott tie up with developers to tap market

- AKSHARA SRIVASTAVA & SANKET KOUL

Hospitality companies in India have identified branded residences as the next avenue of growth. Demand in the growing segment is fast outpacing supply, prompting hospitality giants from international chain Marriott to the home-grown Indian Hotels Company Ltd (IHCL) to strengthen their presence.

A branded residence is typically a mixed-use project that builds residential properties often in conjunction with a traditional hotel. The entire project (hotel and residence included) is then branded and managed by a company, often a hotel operator.

"Apart from the luxury and midscale segments, I firmly believe that branded residences will gain traction. That is how the market is evolving, and we are going to do more of it now," Puneet Chhatwal, managing director and chief executive officer (MD&CEO) at IHCL told Business Standard.

The parent of Taj Hotels, IHCL will launch the Taj Sky View Hotel & Residences in Chennai — an integrated development comprising a 253-key hotel and 123 Taj-branded residences.