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IHCL’s bid to manage the Claridge’s Collection portfolio in India highlights the company’s luxury strategy, especially as it follows its acquisition of the Tree of Life boutique hotel chain.
Bulbul Dhawan
Indian Hotels Company (IHCL) on Thursday announced that it will take over the management of Delhi’s iconic Claridge’s Hotel in April. Company executives described the move as a way to further expand IHCL’s share of India’s luxury hotel sector.
India’s largest hotel operator, which owns the luxury brand Taj, has announced that it has entered into a management agreement with Claridge’s Hotels Private Limited, which is unaffiliated with London’s Claridge’s Hotels.
“The Claridge family has a strong position in the luxury goods space,” IHCL CEO Puneet Chatwal said at the company’s results conference. “This gives IHCL an opportunity to offer a differentiated product offering different from its flagship brand Taj and grow in the luxury space.”
The deal will begin with IHCL managing the group’s assets in Delhi. The hotelier plans to start operating other properties later.
Claridges Hotel Private Limited retains ownership of the property and brand name.
The business decision was made when IHCL reported its quarterly results, saying it is witnessing continued strong demand in domestic luxury travel.
Chatwal shared that the company’s flagship brand, Taj, achieved double-digit year-on-year growth in average room rates.
IHCL’s “Premium Positioning”
Chatwal said he expects average room rates to rise across all of the company’s brands. His reasoning is that IHCL can command higher room rates due to its brand strength, strong loyalty program and vast network.
The Taj brand helped IHCL achieve a 66% premium on revenue per available room over the industry average, highlighting that luxury brands are well-positioned to pass on inflation. I did.
The CEO highlighted the strengths of Taj Hotels: “Nobody handles domestic flights in India like Taj…Our ability to charge is better. We have more ability to attract people.”
Chatwal cited the Taj Mahal Palace and Tower as an example, noting that its year-on-year growth rate was “more than 30%.”
Year-to-date performance of the Lodging Sector Stock Index
What am I looking at? Performance of hotel and short-term rental sector stocks within the ST200. The index includes publicly traded companies in global markets, including international and regional hotel brands, hotel REITs, hotel management companies, alternative accommodations, and timeshares.
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