Indian Hotels is opening 10 new hotels under its midscale category brand Ginger. The company has partnered with Madison for the construction of the hotels in Telangana. The estimated cost of the hotel construction is about 500 crore.
Suma Venkatesh, Executive Vice President, Real Estate & Development, IHCL, said in a statement that Ginger represents IHCL’s strategic response to capitalise on the growing opportunity in the midscale segment in India for the aspirational traveller.
“Signing of this framework agreement for 10 Ginger hotels across the southern states is reflective of this potential,” Venkatesh added.
IHCL’s expansion in Genome Valley
IHCL said that the ten new hotel sites will primarily be greenfield and brownfield projects, and the partnership has commenced with the signing of a 75-key Ginger hotel in Genome Valley in Telangana and will be the first branded hotel in the region.
Jasmeet Chhabra, Co-Founder, JV Ventures, Madison’s parent company said that the company will roll out ten Ginger Hotels with over 1,000 keys with an estimated outlay towards construction cost of INR 500 crores across industrial and spiritual towns in southern India over the next 3 years in partnership with IHCL.”
Ginger Hotels expansion
Indian Hotels’ Ginger brand operates about 120 mid-scale hotels. The brand targets corporate travellers in economy class and complements its high-end brands like Taj and Vivanta.
Recently Ginger Hotels purchased majority stake in ANK Hotels and Pride Hospitality, bringing the 135-property portfolio of Clarks Hotel and Resorts to the IHCL’s Ginger brand, effectively doubling its mid-scale segment.
In FY25, Ginger hotels outperformed the industry in both occupancy and revenue growth rate, motivating the company management to expand the mid-scale segment.
While the industry occupancy rate in FY25 was 57 per cent, Ginger hotels clocked a 71 per cent occupancy. Similarly, the brand posted a 9.4 per cent Revenue per Available Room CAGR (Compound Annual Growth Rate) of 9.4 per cent between FY18 and FY28, while for the industry, the same remained at 3.9 per cent.