IHCL CEO Puneet Chhatwal, ET HospitalityWorld

The Indian travel and tourism sector is well positioned to take advantage of the economic recovery, driven by factors such as the demand-supply gap, penetration opportunities in Tier II and III markets and a rebound in foreign tourist arrivals, says management company Indian Hotels Company Ltd. director and CEO Puneet Chhatwal.

In his address to shareholders in the company’s Annual Report 2023-2024, Chhatwal said the Tata group’s hospitality company is uniquely positioned to capitalize on the opportunities presented by the booming industry.

He added that the company plans to establish its ‘Gateway’ brand – a full-service hotel offering in the upscale segment, targeting emerging micro markets such as metros and tier II and III cities – in a portfolio of 100 hotels by 2030.

“In India’s evolving economic landscape, tourism has emerged as a powerful force driving not only economic growth but also paving the way to a brighter and more inclusive future. With its rich cultural heritage and warm traditions, Indian hospitality has undoubtedly reached the global stage,” he wrote.

He further said that India’s economic growth story has been characterized by a dynamic interplay of economic expansion, changing consumer preferences and evolving aspirations. Growing affluence is leading to new trends such as increased premiumization, experiential travel and brand awareness.

“India’s travel and tourism industry is among the fastest growing economic sectors in the country, contributing to job creation and regional development,” Chhatwal said.

On future prospects, he said, “The sector is well positioned to capitalize on economic growth driven by demand-supply gap, market penetration opportunities in Tier II and III markets, strong demand drivers such as MICE, spiritual tourism, growth number of foreign tourist arrivals and destination weddings.”

This evolving landscape is characterized by increased consumer awareness and greater preference for brands.

“With our diverse portfolio, iconic properties, world-class services and a brand landscape defined to meet a myriad of travel and hospitality needs, we are uniquely positioned to capitalize on the opportunities presented by this dynamic industry,” Chhatwal told shareholders. He said that in FY24, IHCL expanded its international footprint with the signing of contracts in Frankfurt, Dhaka, Bhutan and Nepal.

“Thanks to 34 openings during the year and 53 signings, which translated into a new contract every week, we are currently present in 150 locations,” he said, adding that the hotel chain is constantly developing and its brand image is evolving.

IHCL has announced its new concept of ‘Gateway’, a full-service hotel in the upscale segment, ideally suited to tap growth opportunities in emerging micro markets, metros and tier II and III cities, he said.

“The brand rollout will start with 15 hotels in Bekal and Nashik, followed by locations like Bengaluru, Thane and Jaipur. By 2030, the brand’s portfolio will include 100 hotels,” Chhatwal said. Moreover, he said, “We have also entered into a strategic alliance with Tree of Life Resorts & Hotels, which will help us further expand our brand into newer formats that cater to evolving travel trends.”