Archive · 13 Aug 2025
Indian Hotels to Expand Mid-Scale Hotels for Growth
Imagine a big hotel company called Indian Hotels that owns fancy hotels like Taj.
They're now also building a bunch of smaller, more affordable hotels called Ginger, aimed at business travelers.
They're doing well, with more people staying in their Ginger hotels than other hotels.
They are spending money to buy more hotels to add to Ginger, to make it even bigger.
They are using smart contracts, so they can grow fast without spending too much.
This is because more people need these affordable hotels.
Indian Hotels is expanding its mid-scale segment, doubling its portfolio with acquisitions.
The company is investing approximately Rs 204 crore in the expansion.
The Ginger brand, a mid-scale brand of Indian Hotels, targets corporate travelers.
Ginger hotels reported 71% occupancy in FY25, outperforming the industry.
The acquisition is based on management contracts, reducing financial risk and enabling rapid expansion.
- Who
- Indian Hotels, including its Ginger brand, and its CEO Puneet Chhatwal.
- What
- Indian Hotels is expanding its mid-scale hotel segment.
- When
- The expansion is happening now, with FY25 results showing strong performance.
- Where
- Expansion includes hotels across India, with specific mention of Kolkata airport.
- Why
- To meet the growing demand and capitalize on the profitability of the mid-market segment.
Management Contracts
Expansion Strategy
Financial Risk
Management Contracts
Management contracts reduce financial risk for IHCL.
Expansion Strategy
N/A
- Investment Amount
- Rs 204 crore
- Ginger Occupancy (FY25)
- 71%
- Industry Occupancy (FY25)
- 57%
- Ginger EBITDAR Margin
- 51%-55%
- Ginger RevPAR CAGR (FY18-FY28)
- 9.4%