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Economic Times
4 days ago
- Business
- Economic Times
IHCL's Ginger brand is leading the mid scale opportunity in India: MD and CEO Puneet Chhatwal
Representative image. Indian Hotel Company's (IHCL's) budget brand Ginger is leading the mid-scale opportunity in India and has the potential to even scale to 1000 hotels over time, MD and CEO Puneet Chhatwal said on Monday. Tata Group-backed Indian Hotels Company Ltd (IHCL) has agreed to buy around 51% stake each in ANK Hotels Pvt Ltd and Pride Hospitality Pvt Ltd for a combined Rs 204 crore, giving fresh impetus to its network expansion drive in the domestic market. Most of these properties will be rebranded as Ginger hotels, which will expand the chain's Ginger brand to a 250-hotel portfolio, Puneet Chhatwal, MD and CEO at IHCL told ET on Monday. ANK Hotels Pvt Ltd and Pride Hospitality Pvt Ltd have a portfolio of 135 hotels in the midscale segment spread across 110 locations and are presently operated under The Clarks Hotels & Resorts brands. Over the next few months, they will be integrated operationally and migrated to IHCL's 'brandscape' predominantly under the Ginger brand among others. IHCL said these hotels are a on a capital light arrangement of management contracts and select operating leases.'Before today, I would not have dared to put this figure of 1000 hotels. Today, we can. I personally feel that in the foreseeable future, just like we have gone from 40 Ginger hotels in 2015 to what would be 250 now, we can also go to 1000 over the long term,' said Chhatwal at a press briefing on Tuesday. 'It would be nothing different than what has happened several times globally. Many brands of this category in markets such as France, the UK, and Germany have experienced exponential growth. The potential for growth is nothing less than exponential,' he said while Taj will always be the crown jewel of the Tata Group and the country, the chain is now coming up with 'iconic' assets in the mid-scale range under the Ginger brand at major airport locations.'We took a very conscious decision to build big box Ginger properties. So, the first one was on our own land at Mumbai airport. That has 371 rooms, and is expected to do an occupancy of 88-90% this year at an average rate of Rs 6500,' said Chhatwal.'We are doing more properties like these. Next year, we will open one at the Bengaluru airport. We have one under construction at the MOPA airport in Goa, and very recently, we have concluded a deal for a Ginger hotel at the Kolkata airport which should open in the next 12-14 months. The margins of these reimagined Ginger hotels is around 50% plus. The Sweet spot is 55%,' he added. The deal with ANK Hotels and Pride Hospitality takes IHCL's portfolio to over 550hotels, and 55,000 rooms. IHCL has also signed a marketing and distribution agreement with Brij Hospitality, which has a portfolio of 19 hotels under the Brij brand, primarily across India. The chain said the key managerial personnel of ANK, Pride and Brij Hospitality will continue to oversee the running of the respective companies, thereby providing business continuity and also enabling future growth of the companies. 'Combining over 200 years of collective hospitality legacy, we come together with IHCL, part of the iconic Tata Group. Together, we are a powerhouse of energy with a shared vision for growth and transformation. This is more than a partnership — it is a union of legacies, ready to inspire the future," said Aryavir Kumar, promoter of ANK Hotels Pvt Ltd. Anant Apurv Kumar and Udit Kumar Founders of Brij Hotels and promoters of Clarks Group of Hotels said together with IHCL, the company will carry forward the shared vision of its respective founders, Jamshed Ji Tata and Babu Brijpal Das Ji, in shaping and propelling India's tourism journey.
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Business Standard
5 days ago
- Business
- Business Standard
IHCL to buy stake in firms operating The Clarks Hotels & Resorts' brand
Tata Group-owned Indian Hotels Company Ltd (IHCL) on Monday said a committee constituted by its board has approved and executed agreements to acquire about 51 per cent stake each in two entities -- ANK Hotels and Pride Hospitality -- which have a portfolio of 135 hotels operated under 'The Clarks Hotels & Resorts' brand. The transactions to be executed via cash consideration are expected to be completed by November 15, 2025. The share subscription and purchase agreements and shareholders' agreements were executed to acquire about 51 per cent equity stake for an amount not exceeding Rs 110 crore in ANK Hotels Pvt Ltd, and Rs 94 crore in Pride Hospitality Pvt Ltd, according to a regulatory filing. "The foregoing companies have a portfolio of 135 hotels which are operated under 'The Clarks Hotels & Resorts', primarily across India, IHCL said. The country's biggest hospitality player has also signed a distribution & marketing agreement with 'Brij Hospitality Pvt Ltd', which has a portfolio of 19 hotels under the Brij Brand, primarily across the country. The transactions (subject to fulfilment of certain condition precedents) aim to address India's heterogenous market landscape and provide deeper geographical penetration across India in the midscale segment while continuing to pursue its asset light growth strategy, IHCL stated in the filing. The proposed acquisition of 51 per cent stake in ANK Hotels Pvt Ltd will add a portfolio of 111 midscale hotels (with 67 hotels in operation) to IHCL's portfolio. Established in 1996, ANK Hotels Pvt Ltd has its registered office in Lucknow. It has presence in India & Sri Lanka. Pride Hospitality Pvt Ltd, established in 2005, has its registered office in Jaipur. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
