India still underserved in mid-market hospitality: IHCL MD Puneet Chhatwal

A day after announcing strategic partnerships with ANK Hotels and Pride Hospitality, Puneet Chhatwal, managing director and CEO of Indian Hotels Company Limited (IHCL) , stated on Tuesday that India continues to be an underserved hospitality market, especially in the mid-market segment.

Chhatwal noted that India’s hospitality sector has witnessed sustained demand momentum over the last three consecutive fiscal years, reflective of the country’s growing economic prominence and rising discretionary spending. “The outlook for the sector remains buoyant as demand outpaces supply, and India continues to be an underserved hospitality market, especially in the mid-market segment,” he said at a press conference in Delhi today.

On Monday, the Tata Group hospitality firm acquired majority stakes in two hospitality companies - ANK Hotels Private Limited and Pride Hospitality Private Limited - to strengthen its footprint across India’s midscale and boutique luxury segments.

The new alliance is part of IHCL’s five-year “Accelerate 2030” roadmap, which seeks to unlock the country’s tourism potential through a multi-pronged approach tailored to its diverse market landscape, said Chhatwal.

The owner and operator of the Taj brand of hotels has acquired a 51% stake each in ANK Hotels and Pride Hospitality for a combined amount of up to ₹204 crore. The proposed acquisition of ANK Hotels will add a portfolio of 111 midscale hotels (67 currently in operation) to IHCL’s portfolio, while Pride Hospitality will contribute 24 midscale hotels (13 currently in operation).

In addition, the company has entered into a distribution and marketing agreement with Brij Hospitality Private Limited, which has a portfolio of 19 hotels under the Brij brand, primarily across India.

With the successful transformation of the Ginger brand, IHCL has already strengthened its position in the midscale segment, Chhatwal said. This latest partnership doubles its portfolio to over 240 hotels, catering to the needs of aspirational travellers. The inclusion of Brij Hotels adds depth to the experiential boutique luxury space, leveraging their strong brand equity in India’s cultural and historical hubs.

“With their rich legacy and hospitality expertise, the key managerial personnel of ANK, Pride, and Brij Hospitality will continue to oversee the running of the respective companies, thereby providing business continuity and also enabling future growth of the companies,” he said.

ANK Hotels and Pride Hospitality have a portfolio of 135 hotels in the midscale segment spread across 110 locations and are presently operated under The Clarks Hotels & Resorts, which over the next few months will be integrated operationally and migrated to IHCL’s brandscape, predominantly under the Ginger brand, among others, he added.

These hotels are on a capital-light arrangement of management contracts and select operating leases. Brij Hospitality has a portfolio of 19 hotels in the experiential leisure segment in India’s unique destinations.

Formed in 1996, ANK Hotels operates and manages properties in India and Sri Lanka under the umbrella of The Clarks Hotels & Resorts, with a turnover of ₹14.32 crore in FY25.

On the other hand, Pride Hospitality, established in 2005, operates and manages hotels under The Clarks Hotels & Resorts brand in India. It has a portfolio of 24 midscale hotels (13 currently in operation), operating under brands including Clarks Safari, Clarks Collection, and Clarks Resort, and recorded a turnover of ₹18.94 crore in FY25.