IHCL to continue with acquisitions, eyes bigger share of spiritual tourism

IHCL to expand its midscale portfolio with Clarks Hotels rebrand, Tree of Life growth, and Brij Hospitality tie-up, targeting 700 hotels before 2030 and stronger pan-India presence

Having taken controlling stakes in ANK Hotels and Pride Hospitality—-the operators of Clarks Hotels and Resorts— the parent firm of Taj Hotels, Indian Hotels Company (IHCL), will continue its strategy of acquisitions, as it expands to gain scale in the Indian and overseas markets, Puneet Chhatwal, the company’s managing director and chief executive officer said. 

IHCL is India’s leading hospitality company by market capitalisation at ₹1.06 trillion. Chhatwal said that with the addition of 135 hotels, the company’s overall portfolio will cross 550. 

“IHCL is leading the midscale opportunity and the potential for growth is nothing less than exponential. India’s hospitality and aviation moment is happening now and the hospitality sector is witnessing sustained demand momentum amid rising discretionary spends and India’s growing economic prominence. This partnership addresses the growing needs of the aspirational traveller,” Chhatwal told Business Standard in an interview on Tuesday.  

Chhatwal said that while its acquisition strategy was not a new playbook, the company plans to continue on this path. “We are currently net debt zero, we have cash, and we have the Tata Group. As and when opportunities arise, we will go for it. What India needs is an all-inclusive brand,” he said. 

In November 2024, IHCL acquired a majority stake in Tree of Life Resorts & Hotels, building upon its existing partnership with the Ambuja Neotia Group, Tree of Life’s parent company. With over 20 hotels and 330 keys currently under the brand, IHCL has outlined plans to grow it to 100 properties by 2030. 

Meanwhile, the company will rebrand 135 Clark branded hotels across 110 locations to Ginger, strengthening its presence in the midscale category. The Ginger brand clocked a revenue of ₹675 crore in the financial year 2025. The move will take the brand's count to 241 and it is expected to reach ₹800 crore in the ongoing financial year. 

In the pole position, Ginger is set to reach 500 hotels in the coming 5-7 years, and “in a decade’s time, we might reach 1,000 Ginger-branded hotels,” Chhatwal added. 

IHCL had earlier identified Ginger as the second-most important brand in its portfolio, after its mainstay Taj. 

The company now has a total of 17,537 keys in the midscale segment, with 9,732 operational and 7,805 in the pipeline. According to hospitality consultancy firm Horwath HTL, the midscale-economy segment will account for 27 per cent of the Indian hospitality sector by 2030. 

The company has also signed a marketing and distribution agreement with Brij Hospitality, which has a portfolio of 19 hotels, of which nine are in the pipeline. “It is an exciting brand and provides us a good opportunity to bring it to a pan-India level in spiritual and cultural destinations. There is a big movement in the experiential tourism category and it has many facets – from spiritual to cultural to wellness. We cover more than 50 spiritual destinations with our brands right now, and this agreement makes us go deeper and wider into it,” he added.