IHCL banks on Tata Neu for membership additions; to add 60 hotels in next three years | The Financial Express

IHCL banks on Tata Neu for membership additions; to add 60 hotels in next three years

“Our total portfolio of hotels today stands at 242, and we want to take this to 300 by 2025. We have 179 hotels in operation and 63 in various stages of development. So, of the next 50-60 Hotels, maybe four or five would be owned by us, the rest will be based on management contracts or operating leases,” Puneet added.

IHCL banks on Tata Neu for membership additions; to add 60 hotels in next three years
“In the first quarter, we have added 1 million new members to our IHCL base, coming primarily from the larger Tata Neu base,” he said, adding that this is a 50% growth in its loyalty base.

With businesses back to normal, Indian Hotels Company (IHCL) added about 1 million new members in the June quarter, a majority of which came in through the recently launched Tata Neu app. Further, the parent company of Taj hotels intends to add another 60 hotels to its portfolio in the next three years.

“At IHCL, we are constantly re-imagining our offerings to ensure maximum delight for our guests and stakeholders. As a part of this re-imagination, the Taj InnerCircle programme, one of the most rewarding and awarded loyalty programmes, has now migrated into Tata Neu, which offers enhanced customer benefits,” said Puneet Chhatwal, managing director and chief executive officer of IHCL.

“In the first quarter, we have added 1 million new members to our IHCL base, coming primarily from the larger Tata Neu base,” he said, adding that this is a 50% growth in its loyalty base.

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The addition of new members also is due to a rise in leisure (60%) and business (40%) travel by loyalty members as the pandemic eases.

Launched in April this year, Tata Neu is a coalition loyalty programme of multiple Tata partners. As of July, Tata Neu was downloaded by over 7 million users, while the company is expecting this to rise to 150 million in the next two years.

Separately, IHCL is planning to add another 60 hotels to its portfolio in the next three years.

“Our total portfolio of hotels today stands at 242, and we want to take this to 300 by 2025. We have 179 hotels in operation and 63 in various stages of development. So, of the next 50-60 Hotels, maybe four or five would be owned by us, the rest will be based on management contracts or operating leases,” Puneet added.

“Mostly the growth will be driven by management contracts, but there will be selective investments in key destinations like in the past, like Taj in Goa, Kerala and the Andamans. We have got the letter of awards for Lakshadweep hotels, we are doing that, and also in Kevadia (Gujarat). So, we will continue to do this kind of strategic nation-building investment in the spirit of Tata,” he added.

IHCL is building two hotels each in Diu and Lakshadweep, while it also announced projects in Kevadia (where the Statue of Unity is situated). The project in Diu would be up and running in one year, while Lakshadweep could take up to three years for completion. IHCL is building two hotels in Kevadia, under Vivanta and Ginger Hotels, with 125 and 150 keys, respectively, set to open in 2025.

Oriental Hotels, an associate company of IHCL, has emerged as the highest bidder for the lease renewal of the iconic Taj Malabar Resort & Spa, Kochi. “It will take three-four months to finalise the design and then we will close it and make it the most glorious hotel in that area,” Chhatwal added.

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