TravTalk India Online Magazine
Puneet Chhatwal, MD & CEO, IHCL, Chairperson, FAITH & President, HAI, offers insights into the fusion of art and science driving IHCL’s market expansion. He emphasizes on the strategic blend, highlighting the group’s growth trajectory.
Janice Alyosius
A balance of art and science defines The Indian Hotels Company Limited’s (IHCL’s) approach to market expansion. “Development is both an art and a science. Pure science alone isn’t sufficient, and pure art alone isn’t either. It’s a combination of various factors, such as the type of contracts—whether it’s a management contract, a lease contract, an investment, a partnership, or a joint venture, among others,” says Puneet Chhatwal, Managing Director and CEO, Indian Hotels Company Limited (IHCL), Chairperson, Federation of Associations in Indian Tourism & Hospitality (FAITH) & President, Hotel Association of India (HAI), providing a glimpse into the meticulous planning and strategic anticipation, which is driving the company’s growth trajectory.
Discussing the factors determining where to expand and how to grow sustainably, he said, “That’s where the science comes in. Deciding where to expand is also a science. However, the art lies in knowing the right time to accelerate and when to decelerate.”
Under Chhatwal’s leadership, IHCL has emerged as a trailblazer in growth. Commenting on the success, he said, “The combination of both science and art has led us to become the industry benchmark in growth over the last three to four years, with the highest number of signings and openings. And I don’t foresee that changing in the years to come.”
With an ambitious pipeline comprising 85 hotels, IHCL is poised to maintain its momentum, aiming to open a minimum of two hotels per month. “There may be new conversion opportunities or new construction projects that we are not yet aware of. Hence, we anticipate being in a favourable position to continue opening a minimum of two hotels per month,” said Chhatwal.
Furthermore, Chhatwal also provides insights into IHCL’s expansion plans in Lakshadweep, highlighting the complexity of building on an island. “We are in the final stages of planning, which will soon be submitted for approval. However, construction will take three to four years, or possibly even five, given the complexity of building on an island rather than just a hotel on a regular site,” he revealed.
About the high room rates, which have led to many weddings being held abroad, Chhatwal acknowledged the shifting dynamics in the hospitality landscape. “People have accepted the current average room rates. Nevertheless, based on discussions with numerous individuals, I still believe that weddings, especially in hotels, are relocating to venues outside due to the high banquet room rates. However, these figures don’t align with what is announced when publicly listed companies declare their results. Each company reports double-digit growth in the top line, which wouldn’t be possible if people were indeed moving out. On the contrary, as foreign travel gradually returns to pre-COVID levels, we expect these numbers to rise even further,” he said.
Looking ahead, IHCL anticipates a resurgence in demand as international travel gradually rebounds to the pre-pandemic levels. This optimism underscores IHCL’s unwavering commitment to innovation and adaptability in navigating evolving market dynamics.
