Indian Hotels Company Ltd. (IHCL), part of the Tata Group, has taken a big leap in Delhi’s luxury hotel market by signing a 25-year management contract for the iconic The Claridges in New Delhi.
This historic hotel, which started operations in 1952, will now be operated under the Indian Hotels umbrella. The company plans to retain The Claridges brand while giving the property a facelift to align it with the luxurious standards of IHCL’s portfolio.
The Claridges is a notable landmark in Lutyens Delhi, an area known for its prime real estate and heritage appeal. By adding this property, IHCL is expanding its luxury offerings and strengthening its foothold in a key metropolitan market.
Puneet Chhatwal, the managing director and CEO of Indian Hotels, highlighted that the move aligns with the company’s strategy to broaden its brand ecosystem in central Delhi, where they already manage well-known properties like the Taj Mahal, Taj Palace, and The Connaught.
Additionally, Indian Hotels plans to introduce its other brands, including Gateway and Vivanta, in the Delhi-NCR region. The company is already developing three new hotels: a large 380-room property near Delhi’s international airport, a 225-room hotel at Sohna Road, and a 160-room Vivanta hotel in Gurugram.
This new acquisition is part of a broader expansion strategy for Indian Hotels. The company signed up 42 new hotels from April to October, including international ventures in Bahrain and Bhutan. Currently, IHCL operates 232 hotels with 118 under development, aiming to hit 350 properties soon.
A recent highlight was IHCL’s increased investment in Tree of Life Resorts, acquiring a 55% equity stake. This move complements their strategy to manage boutique and unique properties, catering to the preferences of affluent travellers seeking exclusive experiences.
Indian Hotels has also enhanced its catering arm, TajSATS, which became a wholly-owned subsidiary in August. This catering wing serves prestigious clients like Starbucks and Vistara Airlines and is now poised to expand into non-aviation sectors as well.
The market responded positively to Indian Hotels’ recent developments. As of today, Indian Hotels Co. share price surged by 7.36%, closing at ₹734.15, up by ₹50.35. The stock opened at ₹709.10, hit a high of ₹736.45, and dipped to a low of ₹693.65 during the trading session.
With this significant move into The Claridges, Indian Hotels is reinforcing its commitment to luxury and heritage in key markets, solidifying its position as a leader in the Indian hospitality industry.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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