Varun Aggarwal’s Post

Thank you Hotel Investment Today, for publishing this interview with the CEO of Indian Hotels Company Limited (IHCL). Readers may choose to read the content at their leisure, but at its core, the takeaways are refreshing! The success of the group has a lot to do with 'Tajness' which is possibly built in their staff's DNA, but my comments are more in support of the group's intention to not close their eyes towards asset ownership as well as increase the depth of brands/positioning, that real estate developers can choose from. Legacy Indian hospitality brands such as Taj (IHCL), Oberoi Hotels (EIH Ltd) and ITC had gradually lost out to international brands such as Marriott, Hyatt, Hilton etc. when it came to signing on new assets in Indian cities, primarily due to the depth of (brand) positioning that international operators offered developers. International operators generally had a brand that could 'fit' into certain construction cost per key that owners shelled out (and return expectations, possibly) - this was not always an upscale or a luxury positioning where Taj, ITC and Oberoi would historically operate, but could cater to the mid-scale and budget travelers too. Shareholder pressure, RE ownership regulations and risk management dictated that international brands expand using an 'asset lite' approach, and soon such brands grew to have significant presence in a 'cost-conscious' (read lower $ ADR) market, like India. It brings in management or franchise fees, fair enough, but does it add as much value as it might have done, had ownership of assets been involved? Owning an asset in a city that has robust fundamentals, does make a lot of sense for one's balance sheet. IHCL's CEO is of the perspective that it does make sense to own, as well as manage. He doesn't outrightly reject the ownership question, which one can understand, given the financial muscle of the Group and its Parent Co. This is a welcome remark, specially when most established operators, nowadays, prefer not to take development exposure. Happy reading! #rsm #rsmuae #hotels #hotelinvestment #hospitalityindustry #realestateinvestments #realestate #assetmanagement #hotelmanagement #hoteldevelopment #ceo #ceoinsights #riskmanagement

The Indian Hotels Company Limited (IHCL), a Tata Group enterprise, is undergoing a massive transformation under CEO Puneet Chhatwal. Here are key takeaways from IHCL's current strategy and trajectory: 𝗔𝗴𝗴𝗿𝗲𝘀𝘀𝗶𝘃𝗲 𝗘𝘅𝗽𝗮𝗻𝘀𝗶𝗼𝗻 IHCL plans to double its revenue to ₹15,000 crore and the number of hotels by 2030. It plans to increase its hotel portfolio to over 700 properties globally, up from the current 232 operational hotels (214 in India).118 properties are under development across 13 countries on four continents. 𝗗𝗶𝘃𝗲𝗿𝘀𝗲 𝗣𝗼𝗿𝘁𝗳𝗼𝗹𝗶𝗼 The company operates across luxury, mid-scale, and budget segments under eight brands, including Taj, Vivanta, Ginger, and amã Stays & Trails. IHCL has introduced new verticals like Qmin (food delivery) and The Chambers (club memberships). Taj, its luxury brand, will grow from 50 to 120 hotels. Ginger, its midscale brand, will expand from 46 to 100 hotels 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗥𝗲𝘀𝘂𝗿𝗴𝗲𝗻𝗰𝗲 Revenue recovered strongly post-pandemic, reaching ₹6,768.7 crore in FY24, up from ₹1,575 crore in FY21.Profitability has also returned, with ₹1,330.4 crore in FY24, compared to a loss of ₹795.6 crore in FY21. 𝗖𝗵𝗮𝗹𝗹𝗲𝗻𝗴𝗲𝘀 𝗔𝗵𝗲𝗮𝗱 The rapid expansion has raised concerns about maintaining quality, particularly in mid-scale and budget properties like Ginger. Competitors like Marriott International are leading in room count. Global expansion faces stiff competition from established luxury brands 𝗠𝗮𝗿𝗸𝗲𝘁 𝗟𝗲𝗮𝗱𝗲𝗿𝘀𝗵𝗶𝗽 IHCL has seen its stock price rise over 400% in five years, with a current market cap of ₹1 trillion, outpacing rivals like Marriott and Oberoi Hotels The company’s ambitious goals reflect its leadership's confidence in India’s growing hospitality market, but sustaining quality and addressing service inconsistencies will be critical to its long-term success. IHCL CMP Rs 751.5 Market cap Rs. 1.07 Trillion Rishabh Kale

The future of hospitality in India is incredibly promising. With increasing domestic travel driven by a growing middle class and enhanced connectivity, alongside rising global tourism attracted by India's rich culture and heritage, the industry is poised for exponential growth. The demand for diverse offerings—ranging from luxury experiences to budget-friendly options—continues to expand, catering to varied consumer preferences. This momentum is further fueled by India's emergence as a major global hub for business travel, events, and leisure tourism. As the sector grows, so does the need for trained professionals who can uphold global standards in service, food safety, and compliance. At IFSTSN, we are committed to empowering the workforce in the hospitality industry by providing world-class food safety training and certifications. Whether it’s ensuring regulatory compliance, upskilling professionals, or fostering innovation in food handling and safety practices, we aim to play a pivotal role in supporting this booming sector. The hospitality industry’s future lies in its ability to adapt and innovate, and a strong foundation in food safety and operational excellence is crucial for sustainable growth. Through IFSTSN, we’re helping create a skilled and confident workforce ready to meet the evolving demands of this dynamic industry.

Interesting !!!! India’s hospitality sector is undergoing a transformative expansion, with 94,000 new branded hotel rooms expected to be added by 2028-29, according to data from Hotelivate. This represents a staggering 50% growth over the current inventory of 192,000 rooms.

HOSPITALITY NEWS #718 Cygnett Hotels and Resorts unveils its ambitious expansion strategy for 2024 Beyond domestic expansion, Cygnett Hotels is eyeing the international markets, targeting countries with significant Indian diaspora populations such as Nepal, Sri Lanka, Vietnam, the UAE, and East Africa. Cygnett Hotels and Resorts which aspires to be the most preferred and biggest brand in the midscale hospitality segment in India is now 10 years strong. As it enters a decade of operations, Cygnett is embarking on an ambitious expansion plan for 2024, leveraging the success and substantial growth achieved in 2023, particularly in the North and North Eastern regions of the country. With a solid foundation and a proven track record, Cygnett is set to further strengthen its market position through an aggressive pan-India expansion, underscoring its commitment to excellence and its status as a preferred choice in the midscale hotel segment. The performance of Cygnett in 2023 set a new benchmark for the company. The year witnessed a significant 15.6 percent increase in Average Daily Rate (ADR) and a remarkable 15.1 percent growth in Revenue per Available Room (RevPAR). These figures underscore the brand's resilient operational strategies and its ability to adapt to market demands. With occupancy rates reaching around 80 percent in most hotels, the brand's popularity and the effectiveness of its sales and marketing networks are evident. Central to Cygnett's success is its unwavering focus on customer satisfaction, with an impressive 90 percent of guests being repeat visitors. Sources: ET

94,000 new branded hotel rooms by 2029. That’s the scale of transformation India’s hospitality sector is undergoing—an incredible 50% growth over today’s inventory of 192,000 rooms. Here’s how the key players are driving this revolution: ➙  IHCL: Growing from 350 to 700+ hotels by 2030 with their ACCELERATE 2030 strategy. ➙ Marriott: Adding 6,500 rooms across 40 hotels to its current portfolio of 29,000 rooms in India. ➙ Radisson: Expanding into tier 2 and 3 cities with a pipeline of 81 hotels (7,985 keys). ➙ ITC Hotels: Scaling luxury and boutique properties to 200 hotels with 18,000 keys by 2030. ➙ Lemon Tree Hotels: Focusing on midscale and economy segments with 70 new hotels and 4,700 rooms. ➙ Hilton and Accor: Bold plans include Hilton’s Spark by Hilton launch and Accor’s ventures into emerging cities. What’s driving this boom? ➙ Rising demand in tier 2 and 3 cities from both domestic and international travelers. ➙ Diversification across luxury, boutique, experiential, and economy segments. ➙ India’s emergence as a critical market for global hospitality brands. This isn’t just growth—it’s a golden opportunity for India’s tourism, employment, and economic development. But here’s the big question: Are we ready to support this scale sustainably? From infrastructure to workforce training, there’s plenty to consider. What’s your take on this unprecedented growth? Let’s discuss. ♻️ Repost to spread innovation in hospitality. And follow Yash Mehta for more insights. #Hospitality #IndiaGrowth #TravelIndustry #HotelDevelopment #FutureOfTravel

Hospitality Sector Sees 4.8% RevPAR Growth in Q2 2024, Hyderabad Leads – JLL’s Hotel Momentum India Report Jaideep Dang, Managing Director of JLL’s Hotels and Hospitality Group in India, stated, “Despite a dip in corporate room night demand during the summer, the sector has shown strong ADR growth. The upcoming festival season and increased corporate travel are expected to drive further improvements.” Read here: https://lnkd.in/gjfz3yPA

The Indian hospitality sector is undergoing a remarkable transformation, with leading chains like Oberoi Hotels & Resorts , Taj Hotels and ITC Hotels setting new benchmarks in luxury, service excellence, and financial performance. For instance, Oberoi Hotels & Resorts recorded a stellar fiscal year 2022-23 with revenues of ₹2,096 crore—a 101% growth year-on-year—and profits of ₹329 crore, marking an impressive 446% jump (TOI). Similarly, the The Indian Hotels Company Limited (IHCL) -> Taj Hotels achieved a historic milestone with ₹5,000 crore in revenue for FY23, showcasing its robust growth and enduring brand loyalty (Economic Times). Not far behind, ITC Hotels continues to excel, leveraging its unique blend of sustainability and luxury to capture growing market demand in India and beyond. The broader hospitality industry in India reflects these successes, with the market projected to reach USD 247.31 billion in 2024 and grow at a CAGR of 13.96%, hitting USD 475.37 billion by 2029 (Mordor Intelligence). Revenue Per Available Room (RevPAR) also grew by 15.8% year-on-year in Q4 2023 (Economic Times). What’s even more inspiring is the strategic pivot these brands are making—moving from competition-driven approaches to carving unique niches that resonate with rapidly evolving consumer preferences. Taj Hotels for example, is capitalizing on its heritage properties and culinary excellence to offer authentic Indian luxury experiences, while ITC Hotels focuses on sustainable luxury through its “Responsible Luxury” philosophy. Meanwhile, Oberoi Hotels & Resorts continues to emphasize personalized service and exclusivity, setting new standards in guest satisfaction. This shift aligns perfectly with changing traveler behavior, where guests now prioritize unique, curated experiences over standardized luxury. Domestic tourism has surged, fueled by India’s growing middle class, while the return of international travelers post-pandemic has bolstered premium hotel demand across all major chains. Together, these hospitality giants are not only elevating their brands but also putting India firmly on the global luxury hospitality map. By focusing on guest-centric innovation and differentiated value propositions, they’re shaping a future where Indian hospitality stands as a gold standard for the world.

A strong rebound in #India's hotel market has investor confidence growing, while international brands are looking to grow their market presence signing #hotels in second and third tier Indian cities. #Hotels #IndustryOutlook #ProjectPipeline #HotelsInIndia

On Oberoi Hotels & Resorts planning to go big by going small. Having worked with a pioneer of small (& sustainable) hotels in an advisory capacity for almost a decade, I know how exciting a space it is. Customer preferences too seem to be shifting to smaller, more intimate hotels from the something-for-everyone hotels. Covid and the scare around being with strangers in crowded places (and hotels) seems to have accelerated this change in customer preferences and hotel chains seem to be responding too. The Postcard Hotel chain was born of an idea to create bespoke, intimate luxury stay experiences for discerning and well-heeled guests. Its birth around the time of Covid helped it gain customer traction quickly and that's helped fuel its growth and attract others to emulate its model. The Taj too has focused on expanding its footprint of luxury homestays, villas and bungalows via its Ama Trails & Stays brand, and just celebrated opening its 100th villa. Clearly, going big on going small is good for business. What kind of hotel / stay experiences do you prefer when you travel on holiday?