 "Anil Chadha, MD, ITC")
ITC Hotels is exploring opportunities in the branded residences space as part of its ‘asset- right’ strategy.
Anil Chadha, managing director, ITC Hotels, told Business Standard, opportunities are available for branded residences in the managed space. “It is something we are exploring, but have not settled for any specific model yet.”
“We have to make sure that residences or villas are made according to our design and specification standards before we extend any of our brand names – Mementos or Storii. It has to fit into our brand benchmarks and should add value to our iconic brands,” Chadha explained.
ITC Hotels, which demerged from ITC Ltd earlier this month, will be listed on the stock exchanges on Wednesday.
He added that there were a lot of people looking at branded residences right now. “But it’s important to choose the right partner and ensure that it’s a win-win for all.”
ITC’s first brush with mixed use development is in Colombo, Sri Lanka, which also happens to be the company’s first foreign venture in the hotel space.
Luxury hotel Ratnadipa and super-premium residential apartment complex Sapphire Residences are situated on a 5.86-acre plot. The 352-room Ratnadipa opened its doors in April 2024 while the residences have been constructed and sales have started.
Unlike India, where the company is exploring branded residences in the managed space, the project in Colombo is among ITC’s owned projects.
According to the ITC’s annual report for FY24, the investment in WelcomHotels Lanka (Private) Limited stood at Rs 3,480 crore as at March 31, 2024.
Chadha said Ratnadipa had seen “good traction” in the last quarter. “Banqueting is picking up and the food & beverage segment has been extremely well-received.”
On break-even for Ratnadipa, he said, an operating profit was “round the corner”.
Sapphire Residences – a collection of 132 luxury apartments and penthouses boasting panoramic views of the Indian Ocean – would be the finest address in Colombo for years to come, Chadha said.
The mixed-use development project also includes retail space and an office complex, all of which were expected to go live shortly.
The project in the making for a while has had its share of ups and downs with Sri Lanka facing macroeconomic challenges. However, the island nation is believed to be bouncing back.
As part of a strategy to expand into “proximal markets”, ITC Hotels is looking at the managed space in Sri Lanka and Nepal. In Nepal, a Fortune hotel has already come up and ITC has also signed up for a Welcomhotel, which is a 300-room property and will take a few years.
Over the next few years, the hospitality company has quite a runway ahead. According to an investor presentation by the company, ITC Hotels plans to have over 200 hotels with 18,000 keys over five years with two-third in the managed portfolio.
