IHCL Bets Big on Tier-II & III with New Luxury Brand

Indian Hotels Company (IHCL) has unveiled ambitious plans to introduce a premium hotel brand aimed at bolstering its presence nationwide. The upcoming brand will offer high-end accommodations along with top-notch food and beverage (F&B) services and banqueting facilities, strategically targeting the burgeoning markets in Tier-II and III cities. This strategic move seeks to tap into new growth opportunities while further strengthening its footprint in existing locations.

With a vision to establish 50 hotels under this new brand, IHCL aims to capture a significant portion of the massive market comprising 400-500 million residents. Anticipated to offer rooms at an average rate ranging between Rs 8,000-9,000, this brand will complement IHCL's existing portfolio, notably the successful Vivanta brand, catering to a discerning clientele.

IHCL's aggressive expansion strategy aligns with its Ahvaan 2025 plan, which aims to develop a pipeline of 85 hotels, culminating in a portfolio of 300 hotels by FY26. The introduction of the new brand is poised to expedite IHCL's growth trajectory beyond its initial targets.

In the immediate future, IHCL is set to inaugurate four properties in Tirupati, Munnar, Jamshedpur, and near Ahmedabad by the end of March. Building on this momentum, the company has already launched 16 properties in FY 2024, with plans to open two hotels every month in FY 2025, bolstering both revenue growth and management contract-led expansion.

Currently operating 200 properties across various segments, including Taj, Vivanta, Ginger, and SeleQtions, IHCL boasts a strong presence in both domestic and international markets, spanning a hundred locations. This strategic diversification positions IHCL for sustained growth and continued success in the competitive hospitality industry.

News by Rahul Yelligetti