Indian Hotels opens Gateway to better branding

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Mumbai, Sept 11: Indian Hotels Company Ltd (IHCL), that runs Taj Hotels, Resorts and Palaces, launched its third brand, The Gateway Hotel (upscale brand), on Thursday in addition to the already existing brands including Taj (luxury) and Ginger (economy). The group will be soon launching a fourth brand as well.

“We plan to have specific brand to cater to a different set of travellers. Some of the properties did not match up to the demand of the customers. Taj kept acquiring properties that were not matching what the Taj stands for and there was a need for positioning the brands in such a manner that the customers get maximum satisfaction,” said Ajoy K Misra, senior vice president, sales and marketing, Indian Hotels Company Ltd.

Under the Gateway brand, Taj group is aiming to have 50 hotels in the next three years. “We will be bringing 16 existing hotel properties under this brand, 10 new properties will be added soon, and 15 properties are under negotiation,” said Misra.

“The Gateway Hotel will be a new brand catering to the emerging set of contemporary travellers. Gateway is a part of the Taj Group’s strategy to have a large footprint across India,” said Raymond N Bickson, managing director, Indian Hotels Company Ltd.

Bickson said that the group is looking at scaling up the brand to a large number of hotels across India. The group is open to both owning and management model for the brand. The brand will be present in all business districts and leisure locations across India.

Currently, the group has about 1,300 rooms already under the Gateway brand, which it plans to double in the next three years. The average room rate of Gateway brand hotels will range from Rs 3,000 to Rs 6,000 depending upon the location.

The hotels that will be re-flagged under the Gateway brand are in cities like Agra, Bangalore, Calicut, Chikmagalur, Coonoor, Jaipur, Jaisalmer,Madurai, Mangalore, Nasik, Sasan Gir, Surat, Vadodara, Varanasi, Vijayawada and Vishakhapatnam. While the new locations looked at for the Gateway brand are Mumbai, Bangalore, Chennai, Pune, Jullunder, Mysore, Navi Mumbai, Raipur and Gondia.

On investment, Misra said, “Around Rs 40 lakh per room will be invested in the new Gateway hotel project, while investment in existing projects that are being refurbished is much less. The properties under this brand currently have around 100-200 rooms.