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ITC’s hotels division saw an improvement in revenue growth in the March quarter. The business’s margin, however, contracted 12 per cent. While many major hotel chains are choosing an asset-light strategy, Nakul Anand, executive director of ITC, who oversees the company’s hotels division, tells Arindam Majumder the company has a large number of rooms in the pipeline. Edited excerpts:
What is the number of rooms in ITC Hotels’ portfolio?
ITC’s hotel group has about 9,000 rooms, across brands. We are one of India’s largest hotel chains, with about 100 hotels in 70 destinations. ITC hotels have redefined the fine art of hospitality. The company operates its hotels under four distinct brands — ITC Hotel at the luxury end, WelcomHotel in the five-star segment, Fortune in the mid-market to upscale segment and WelcomHeritage in the heritage leisure segment.
How many rooms are company-owned?
More than half the rooms are owned by ITC.
How many rooms do you plan to add in the near term?
We have about 8,000 rooms in the pipeline, both owned and managed.
Where does ITC’s hotels business stand in the pecking order?
We look at each business is in terms of the performance vis-à-vis the competitive set or the segment it operates in. ITC’s hotels business continues to be rated among the fastest-growing hospitality chains in India.
The hotels business contributes less than two per cent to the company’s earnings but requires comparatively larger investment. What is the rationale behind investing heavily in properties?
As a nation, we account for a mere 0.7 per cent of the globe’s tourism share and are under-roomed to meet the one per cent target set by the country through the next couple of years. ITC is committed to making a meaningful contribution to national economic development as an employment multiplier — creating sustainable livelihoods, while enriching the tourism landscape. All ITC businesses are businesses of the future. Our strategy in building our hotels is in line with our vision to be future-ready.
Major hotel groups have said growth would primarily come from tier-II and tier-III cities. Is that on the company’s radar?
Fortune Park Hotels is a wholly-owned subsidiary of ITC and is India’s fastest growing chain of first-class, full-service business hotels, with 46 hotels and 71 signed alliances (including 46 hotels), across 55 cities. So yes, we are looking at this segment with enthusiasm.
How does Park Hyatt Goa fit into your scheme of things?
The matter is sub judice.
