Home Industries Hospitality Taj Hotels to expand property portfolio by 36% in 3-5 years with...

Taj Hotels to expand property portfolio by 36% in 3-5 years with asset-light growth

Taj hotels aims to have 300 properties, with most of the new ones under the asset-light model in which it does not invest in land or construction but enters into a management contract

New Delhi, July 16, 2021: Taj Hotels, one of India’s biggest hotel chains, is aiming to expand its portfolio of properties by 36 percent to 300 in the next 3-5 years, a major chunk of which will come up under its asset-light strategy.

This expansion will add about 80 properties for the Tata Group-controlled Indian Hotels Company (IHCL) that currently has an inventory of 221 properties including 150 operational ones in India, 21 abroad and 50 in the pipeline.

Puneet Chhatwal, Managing Director and CEO, IHCL said, “If we could add 70 contracts during and pre-pandemic in three and half years, there is no reason why we can’t add another 80 in the next 3-5 years. So, our portfolio then becomes a portfolio of 300 hotels.” Chhatwal told inventors and analysts at the Investor Meet 2021 held a few days ago.

About 94 percent of IHCL’s properties in the pipeline are under the asset-light category, in which a company does not purchase land or the building but takes it on management contract and runs the hotel in exchange of management fees. Thus, the asset and its liabilities are on the books of the asset investor according to the reports published in moneycontrol.com.

By the end of next 3-5 years IHCL will have 46 percent of its properties under management contract, 36 percent held by group companies and 18 percent under holding company, according to a presentation made by IHCL.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -

Most Popular

Athletes given ‘anti-sex’ beds at Tokyo Olympics, hilarious reactions online

New Delhi, July 24, 2021: Cardboard-made ‘anti-sex’ beds provided to athletes to prevent intimacy at the Tokyo Games village has triggered a plethora of...

Indian Oil Recruitment 2021: Apply for Engineers and Officer posts, check dates, salary and other details

New Delhi, July 24, 2021: Indian Oil Corporation Recruitment 2021 process for various posts has begun and applications have been invited for the posts...

SRM University Andhra Pradesh Hiring Faculty Posts ! Salary at 12-36 Lakh Per Annum

Amaravati, July 21, 2021: SRM University Andhra Pradesh (AP), Amaravati, a private university of SRM Education Group, has announced faculty recruitment for its various...

SRM University AP Collaborates with Harvard Business School Online

Vijayawada, July 21, 2021: SRM University opens the gates to new opportunities for students, alumni & faculty members as it collaborates with the world-renowned...

Recent Comments