ITC Hotels to look at proximal markets like Nepal, Middle-east next: Chairman and MD Sanjiv Puri

Proximal markets are the first areas of interest to the company owing to unprecedented growth of tourism in the region, Puri said.

Written by Ivinder Gill

April 25, 2024 17:43 IST

The two towers of ITC Ratnadipa are connected by Ahasa One, a 55-metres sky bridge 100 metre above ground, the first in south Asia, constructed by Larsen & Toubro.

Having launched its first overseas property in Colombo on Thursday, ITC Hotels is on an expansion spree, most of which is domestic. Proximal markets are the first areas of interest to the company owing to unprecedented growth of tourism in the region, said ITC chairman and managing director Sanjiv Puri in an interaction with the press. Edited excerpts:

After Colombo, are you looking at any other international destinations?

It is important to focus on proximal markets, both for hospitality and FMCG. In Sri Lanka, we have opened with hospitality and FMCG will follow. In Nepal, we launched FMCG first, and plan to follow up with a hotel soon. Middle-east is also a dynamic region with a vibrant economy, and we are open to exploring that as well if opportunities come our way.

What is your pipeline in the next five years?

We have a very healthy pipeline of 70 hotels in the next five years, all of which are within India. I am advised that it is still inadequate, given the demand. This will be across our hotel brands, with a focus more on premium offerings. The new properties will largely be under management contracts. We are looking to invest around Rs 700 crore to Rs 1,000 crore every year.

You plan to reach the 200-hotel mark in the next five years, with 45% premium properties, up from 30% presently. From where mostly do you see this high spending coming from – business or leisure travel, and domestic or foreign guests?

Both from leisure and business, with a larger demand expected from domestic tourists. International travel is still slow, but is expected to pick up. Business travel has not yet reached pre-pandemic scale, but we expect an uptick.

Any region that you are particularly focused on for this proposed expansion?

Puri is our next opening, and this includes a push for religious tourism as well, which is picking up in India. We already have a property in Katra, one in Tirupati, and are exploring one in Ayodhya too.

A major part of Ratnadipa is residences. How are you looking at this offering and will residences be part of upcoming properties too?

Residences are a popular trend now, and the 132 residences at Ratnadipa will be offered for sale, many of which are already sold out. It is an emerging segment and we are exploring options in our Indian properties as well.

You have diversified with contemporary brands Storii and Mementos that cater to discerning travellers. Is there any plan to offer an ITC product for Rs 3000-4000 a night to tap the mass market? Fortune is your brand with the lowest tariffs. But they are not low enough to be affordable for many.

We are definitely open to exploring these segments. We will continue to build our portfolio where we see an opportunity. Fortune has a certain standard, and tariffs fluctuate depending on location. At some point of time we can look at additional segments.

Do you have any plans that cater specifically to the younger generation?

The youth today are looking to explore new places, and experience new things. Our Storii and Mementoes brands focus mainly on such experiences, exploring nature, etc, and endeavour to attract the younger generation with premium offerings.