Taj Hotels' parent co IHC to add 120 properties to tap travel, wedding boom

By Satviki Sanjay  Luxury lodging brand Taj’s owner Indian Hotels Co. Ltd. plans to add 120 hotels to its chain over the next few years across premium and mid-range labels, including its first one in Frankfurt next year, in a bid to capture soaring demand for travel and leisure spending.  

Eleven of those are scheduled for this year, besides the 14 already unveiled. There are 30 planned for next year and 35 the year after, Managing Director Puneet Chhatwal said in an interview on Bloomberg TV. 

 

Indian Hotels will open the 1952-built Hessischer Hof in Frankfurt in the next 10 months marking its first foray into continent Europe. 

While the hospitality chain, backed by the Tata Group, is evaluating opportunities in western countries and Southeast Asia, Chhatwal said the “focus remains on the Indian subcontinent.” It’ll only “selectively” grow its flagship Taj brand in key international markets.

 

 

Demand for its luxury hotels has shot up as affluent Indians with high disposable incomes splurge on experiences and leisure, even as the middle class cuts back. That helped Indian Hotels more than double its net income to 5.55 billion rupees for July-September from the year-ago quarter, lifting its stock to an all-time high.

 

India Weddings 

The Mumbai-based company is also relying on Indian weddings — nearly 5 million of which are expected in November and December this year — to boost demand for its luxury hotels. Chhatwal said 25% of Taj’s revenue is driven by weddings. 

 

Indian Hotels shares have jumped 66% in 2024 so far, compared to an almost 10% rise in the benchmark S&P BSE Sensex.

 

The firm runs hotels under the premium label Taj and lower-tier labels like Vivanta and Ginger. It also operates an air catering service that works with airlines from Singapore Airlines and Air India to Delta and Qantas. 

 

“The hotel sector is very well-positioned,” Chhatwal said. “The best is yet to come.”