- IHCL has opened up three new properties in key markets such as Goa and Agra which see a lot of tourist influx as reported in last quarter’s earnings report.
- It has around 45 properties under the Ginger brand but now wants to shed some weight by offloading 5-10 percent of the properties and continue to operate it.
The hospitality arm of the Tata Group that owns and operates the Taj hotels, is planning to lessen its ownership of properties to 50 percent by 2022, as it wants to turn ‘asset-light’. It has around 45 properties under the Ginger brand but now wants to shed some weight by offloading 5-10 percent of the properties and continue to operate it.
“As part of our business strategy Aspiration 2022, we are pursuing an asset-light model. In line with this, we propose to sell and lease back some of the Ginger properties in non-metro towns. We will continue to operate these properties but the ownership will change.” IHCL.
CEO of Indian Hotels, Puneet Chhatwal said that while the company is looking to reduce its debt by getting rid of some of the budget hotels in its portfolio but the legacy and the flagship properties such as the Taj brand are not up for the sale.
6 of the Ginger hotels are part of the sale and lease-back plan. This means that Indian hotels will be selling the properties and then will take them up on rent so that the current management doesn’t disrupt.
On the other hand, the hospitality giant has opened up three new properties in key markets such as Goa and Agra which see a lot of tourist influx as reported in last quarter’s earnings report.
It has also introduced a new hotel brand named ‘SeleQtions’ to enhance its brand image. SeleQtions includes named and distinctive hotels as well as chambers- India’s most iconic business club.
Indian economy is cooling down and customer spending is set to fall down further, which is the reason Indian hotels are looking to cut down on its assets.
The shut down of Jet Airways also hit the Tata-owned enterprise, forcing the entity to write off some of the dues.
Along with this Tata Group is also revamping Tata Motors and Tata Steel. These companies are restructuring their portfolio to gain some stronghold in the European markets.
The Indian Hotels Company was founded in 1899 by Jamshedji Tata and is one of the subsidiaries of Tata Group Conglomerate. It manages a portfolio of hotels, resorts, jungle safaris, palaces, spas, and in-flight catering services.