IHCL introduces the Claridges Collection

“The biggest catalyst for growth in hotels is the spend in infrastructure. Every new airport will need new hotels, every renaissance in train stations will provide opportunities for new hotels, every highway will need gas stations and rest houses along the way,” says Puneet Chhatwal, Managing Director and Chief Executive Officer, Indian Hotels Company (IHCL), India’s largest hospitality company with brands such as Taj, Vivanta, Gateway etc.

Chhatwal was in New Delhi to announce the launch of Claridges Collection, a curated set of boutique luxury hotels that will include The Claridges, New Delhi, the historic Connemera, Chennai and post a comprehensive renovation, Blue Diamond, Pune. Claridges Collection is set to build its portfolio across India’s metro cities and key leisure destinations with a vision to reach 20+hotels by 2030.

“With India’s growing economic prominence, the income pyramid is witnessing a structural shift and the demand for luxury product and services is at an all-time high led by significant expansion of households in the high-net-worth bracket. This presents a market opportunity to extend hospitality offerings in the luxury segment as consumers are seeking differentiated experiences,” says Chhatwal.

He added that discretionary consumption is on the rise. “People keep questioning that the hotel rates are high today but what will happen tomorrow or two years down the line. And I say that as the Indian economy grows, the behaviour of the majority of the people will also be like that of a developed economy and that includes extended holidays, discretionary travel.”

Post Covid, a lot of people started going for driving holidays. “Today even if 10-15 per cent of them are driving their family for vacation on an extended weekend, that’s 3-4.5 million incremental room nights within the country. So, when people say the domestic market is flourishing, that’s what it is,” he explains.

Till 11 years ago, the number of branded hotel rooms in the country was 100,000, today it has reached 200,000 but that is still less than Dubai and Singapore put together or less than New York. But the next 100,000 is supposed to come in half the time by 2030. “So, by 2030, we will have 300,000 branded hotel rooms in the country which is still just 0.3 or 0.4 per thousand population, whereas in any other mature economy these are 10 times more. So, there is immense scope for branded supply to increase,” says Chhatwal.

Providing details on IHCL’s growth, Chhatwal said that IHCL has 375 hotels in its portfolio of which 133 are in the pipeline and 242 are operational. “We have grown exponentially in the last seven years adding almost 250 hotels to our total portfolio in operational development. We are finishing this year with 25 new hotels and our guidance for the next financial year and thereafter is 2.5 hotels per month. So, anything between 30-36 hotels opening next year would be realistic and that will keep accelerating as we go further,” he says. As per Chhatwal, most of the growth will come from Gateway and Ginger brands as majority of India’s market size is in the lower end of the market or then in luxury. The mid-market will grow but not at the same pace.

The Claridges Collection, says Chhatwal, will cater to the top 5-10% of the population. Suresh Nanda, Promoter of the Claridges Hotels Pvt. Ltd., said, “We are thrilled to announce this strategic partnership between IHCL and the iconic Claridges brand marking a significant milestone in expanding Claridges' legacy of luxury and excellence across India.”