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Indian Hotels aims to beat 2030 goals ahead of time

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Indian Hotels is confident of meeting its long-term strategic goals ahead of schedule, supported by strong financial performance and sustained travel demand.

“We promise, we deliver. And in an ideal world, we deliver a bit more than we promised and a little earlier than the deadline,” said Puneet Chhatwal, MD & CEO of Indian Hotels.

He pointed out that the company had achieved both its Aspiration 2022 and Ahvaan 2025 targets ahead of time and expects to do the same with its Accelerate 2030 goals.

The Tata Group firm has seen its shares rise over 31% in the past year, and currently has a market capitalisation of ₹1.08 lakh crore.

The company reported a 19.5% rise in consolidated net profit to ₹296 crore for the quarter ended June 30, 2025, compared to ₹248 crore in the same period last year.

These are edited excerpts of the interview.

Q: Give us an idea of what is pushing this growth at a time when one would have thought it’s a difficult quarter because of Sindoor. You would have lost business in Kashmir, and then again, the Air India tragedy. Despite that, it’s a good number that you have done, even on an unconsolidated basis. What were the top three reasons that are working for you?

A: The first important reason is the strength of our brandscape. We are not anymore dependent on just one business or one brand, so the diversification of the brandscape and the diversification of the top line is a consequence of that. Number two is our asset management initiatives, which we have undertaken over several years. It’s an ongoing thing that helps us to drive operating leverage in our capital-heavy portfolio, which is today 40% of the total. And finally, very importantly, not like-for-like growth on a capital-light model. So our management fee income has increased.

If you look at the quarter, the number that we have is what used to be the number for the full year five years ago. So, what we are doing as far as management fee income, despite whatever you said, Operation Sindoor, geopolitical tensions, airline tragedy, etc,. is helping to drive margins. And the little dip that is in the margin is because of a one-time adjustment we have made in the salary increases. We are giving it as of this year, from April 1 versus July 1. So in quarter two, quarter three, and quarter four, the increase will be a little lower because it’s now divided over 12 months.

Q: After the results, you also spoke about the new Tata Sons platform for investment in select assets. Is that more of the same – that Tata Sons does the construction, you become asset-light and earn more management fees? Is that how it will work?

A: Yes, they would be the owner of the asset, and we would prefer, unless it’s a Taj-branded property, if it’s a Ginger or a Vivanta, we would go for a revenue-share model. So we also own the business, and it is geared towards the new businesses and how to support them as another source of capital. And we are very pleased that it’s finally happened with the first asset coming up at the Kolkata airport.

Q: Quarter two normally is weak, isn’t it? So, how is quarter two likely to perform?

A: We would like to come back and say this was the best of the quarter two. Not just that — what you said, quarter four is the second strongest. We are coming from a sequential basis, and if we look at the weakest, it’s always been quarter two in that order. So quarter three is the strongest, quarter four is the second strongest, then you have quarter one, and then you have quarter one. But the way things are going, there is nothing that makes me feel nervous about quarter two not working out well.

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On the contrary, I feel that again in quarter two, especially the international connectivity, would be very positive, like it has been in quarter one from the US and from London. And these are pretty big assets or big sources of revenue, so we remain fairly optimistic about the performance of quarter two also.

Q: Let me come to expansions. You told us in the press release that you opened six new hotels and signed 12 for this quarter. That would make your portfolio 392, is it?

A: Right. It’s impressive.

Q: Does this look like your 2030 goal will be achieved earlier? You did that with Ahvaan 2025. You all did it a year earlier. So, your 2030 goals may also happen earlier?

A: I can only keep repeating that we promise, we deliver. And in an ideal world, we deliver a bit more than we promised and a little earlier than the deadline that we have given. It has happened twice with Aspiration 2022 and Ahvaan 2025. In an ideal world, Accelerate 2030 should do the same.

Q: Let me come to these other businesses you spoke about lately, Taj is not just hotel. You all are defining yourselves as — shall I call it — the hospitality ecosystem. Many innovative ideas, would there be more? Are you all thinking, not for this quarter, not necessarily only this year, but are there any such concepts that you have in mind?

A: There are many others that we could do which have not even come in a significant way in India. One of those, based on my experience in Europe, is something like all-inclusive, where you go, you buy a ticket for a flight, and your transfer from home to airport to the hotel, and a one-week stay with the family and coming back, has just one price for a family of four. We haven’t even gone anywhere close to that as a company, but also as a sector in India, and in a few years from now, this will come.

Similarly, extended stay is a very important component; it is in a very infant phase in India. So a lot of these new concepts, new businesses, serviced apartments, etc., will also come in a big way, as India continues to grow and becomes the fourth largest – or has already become the fourth largest economy – and will become the third largest. So all these concepts will also come.

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We, being at the forefront of this sector, will try to develop these concepts, also belonging to a group that has significant other businesses and can be assisted through whether it’s getting the cars or getting the planes. We stand to benefit a lot from the synergies that the group can offer. So we will always remain open, and any idea that makes sense and is scalable, is very important; we will not do a one-off and then stop there. related to wellness, related to extended stay, related to all-inclusive, and continuous innovation of what we already have, we will try to execute on that relentlessly.

Q: Now, let me come to the tougher part of the business. So many hotels, so many ideas would mean rapid training of staff. Are you seeing that as a challenge, both in terms of numbers and cost? Will that be something that will take away from margins or take away from quality?

A: So, quality – the test is with neutral institutions. I’m sure you read it, Taj was again rated as the World’s Strongest hotel brand and India’s strongest brand across all sectors. This is the fourth year in a row, and World’s Strongest twice, we have had it in succession, and before that also twice in succession. So that is the proof in terms of the quality.

But when it comes to training, it’s a very important factor for us, and over the last three years, we have embarked on the journey of upskilling our people at all levels – from an apprentice to a management trainee to middle management to the top management, including people in the executive committee of the company. We are spending a lot of money on doing that. And more importantly, under our ESG+ programme called Paathya, we just celebrated its third anniversary. We have committed to skill 100,000 people by 2030, and we have achieved the number of 31,000.

We’ve opened 52 skilling centres as part of our CSR contribution, plus our work with Tata STRIVE, to contribute towards nation-building to contribute towards skill-building. And all in all, not just for us, we are doing our utmost to contribute to the sector at large, but also the younger population in India, taking them from their rural sectors and skilling them rapidly and making them fit for working in our sector, so that they can benefit from our businesses.

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Q: Do you even think of a super brand?

A: Yes and no. So we are always looking at brands. But the Taj Mahal Palace Tower is not just the flagship of the Taj brand, it’s not just the temple of hospitality, as we affectionately call it, it’s a national monument. People who come to the Gateway of India just come in there, and just to see the lobby, take their pictures with the flower arrangements. And that’s something we have to learn to live with. We cannot just close our doors to the national population, because when there is also something bad happening, like the attack, the terror attack, it’s also called the attack on the Taj. So it comes with both positives and this kind of challenge.

But we are, all in all, very pleased with such an iconic asset, and the more people who come, the better it is. And those who don’t like it, we will create a new entrance for them from the back. So that they can avoid the traffic, if they so want to. These were closed because of that terror attack. It is not that entrances did not exist before. All the planters that you see in front of the property and the other entrances that were closed were done for security reasons, and we are in conversations with the city and the police to slowly start opening them.

Watch the interview in the accompanying video

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Hotels for Corporates, Dilapidated Rest Houses for the Common Man?

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As the government offers rundown rest houses to the public, questions rise over its ability to manage even basic tourist infrastructure.

Munish Sood

Shimla
In a move that has drawn both confusion and criticism, the Himachal Pradesh government has recently announced that state-run rest houses — long reserved for officials and VIPs — will now be open to the general public. This follows a separate decision by the government to hand over several loss-making tourism department hotels to private operators. Initially, 14 hotels were listed for privatization, but public pressure and political resistance led to 6 being pulled back from the process.

While the announcement to open rest houses to citizens might sound progressive, on the ground, the reality paints a bleak picture.

Rest Houses: A Crumbling Legacy

Most government rest houses across Himachal Pradesh are in dilapidated condition. With peeling walls, clogged drains, smelly bathrooms, unchanged linen, and absent hygiene protocols, they stand as monuments to neglect. Many lack even the most basic facilities such as proper beds, clean washrooms, or consistent electricity and water supply.

“There is no system. The linen hasn’t been changed for weeks, maybe months. You walk into a room and are greeted by a foul stench, damp mattresses, and often, dead insects. And God forbid if you ask for cleaning — the staff often behave as if they’re doing you a favour,” says Shivali Thakur, an avid solo traveller who recently stayed at a forest rest house near Palampur.

‘We can’t run hotels, how will we manage rest houses?’

Ironically, the same government that has admitted failure in managing full-service tourism hotels is now promising the general public access to properties that are in even worse shape.

A senior HPTDC employee, speaking on condition of anonymity, said:

“We have failed to maintain well-staffed and well-located tourism hotels. There is neither budget nor manpower to run rest houses, most of which are tucked away in remote areas. One caretaker, a cook, and occasionally a cleaner — that’s the entire staff structure. What kind of service can we offer to tourists in such a setup?”

Misuse, Mismanagement, and Chamchagiri

Beyond poor maintenance, many rest houses have become unofficial hangout spots for political loyalists and departmental favourites.

“These places are hardly ever available to common people even now,” says Netar Ram, a home stay owner in Kullu.

“They’re misused as party venues by aides of local politicians or as vacation spots for friends and families of bureaucrats. Opening them to the public sounds nice on paper, but unless the entire structure is overhauled, it’ll just remain a sham.”

According to locals, weekend “parties” with loud music, alcohol, and even unauthorized guests are common. Rooms are often blocked in advance for VIP associates, while genuine tourists are turned away with vague excuses about “no availability” or “maintenance issues.”

Two Policies, Two Faces

On one hand, the government is stepping back from running its own hotels — citing losses and inefficiency — and handing them to private players. On the other, it wants to directly manage rest houses and offer hospitality to citizens with almost no staff, no budget, and no training.

This policy contradiction has confused experts and angered tourism stakeholders.

“How can a government that can’t run a full-fledged hotel, with proper systems in place, expect to manage rest houses that are barely functional? What kind of service are we promising? This is not tourism development, it’s tourism dilution,” said a senior travel consultant based in Shimla.

A Call for Urgent Review

If the Himachal Pradesh government truly wishes to democratize tourism and offer affordable accommodation to the public, the focus must shift to urgent refurbishment, transparent booking systems, training of staff, and accountability in maintenance.

Otherwise, this ambitious move might just turn into another populist gimmick — a photo-op announcement that collapses under its own contradictions.



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Roseate Hotels Expands Portfolio, Eyes Dubai, Europe: Rediff Moneynews

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Roseate Hotels & Resorts plans to diversify with managed properties, expand to Dubai, Italy, France, Switzerland, and improve Indian hospitality.

New Delhi, Jul 20 (PTI) Roseate Hotels and Resorts — which owns luxury properties in India and the UK — is eyeing new markets including Dubai, Italy, France and Switzerland and looking at diversifying its portfolio with a mix of owned as well as managed properties, the company’s CEO Kush Kapoor said.

In an interview to PTI, Kapoor emphasised upon the need to market India better, streamline visa processes and improve the working conditions for hospitality sector employees in terms of rationalising their working hours and better wages, as key to attracting more foreign tourists to India and having a better talent pool for the hotel industry.

The Roseate Hotels and Resorts CEO also sought rationalisation of GST rates for the hospitality sector and lowering the number of licences required for hotels to reduce the compliance burden.

“Yes the focus is very heavily on India. We definitely want to be in the upscale market and would like to grow in tier 2 and tier 3 cities also. For us the most important thing is the location of our hotels. We are getting good proposals from the owners and owning partners who are keen to partner with us in terms of management agreements. So we are also looking into that,” Kapoor told PTI.

The Roseate Hotels and Resorts CEO further elaborated on its international expansion plans.

“We are very keen to operate hotels in the United Kingdom, we have five out there. The Noida hotel at the Jewar airport terminal should open in a year’s time. We will also expand our Rishikesh property post this monsoon.

We have a land bank in Goa so we should also get into the development of the Goa property by this year-end. We are very keen to get into places like Dubai and the key markets of Europe. We are definitely open to places like Italy, France and Switzerland,” Kapoor said.

He informed that Roseate was looking at properties having anywhere between 30 to 250 rooms.

“One thing is very clear, we are not going to be a Shaadi or a wedding hotel. We don’t want to have hotels with 300 and 500 rooms. So we are very clear on that part.

Anything ranges between a 30-room hotel to a 250-room hotel we are very keen to get into that segment,” Kapoor said.

He stressed that the working conditions for the employees first of all in the hotels needs to get much better.

“When I am talking about working conditions, I am talking specifically about working hours, that needs to be rationalised. Second, the pay needs to be way high (considering) the amount of time, energy, the employees spend in the organisation,” the Roseate Hotels and Resorts CEO said.

He asserted that “a lot needs to be done” in terms of marketing India better, urging to look at examples of countries like Dubai, Singapore and Vietnam to attract more foreign tourists to the country.



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Roseate Hotels looking to diversify portfolio with managed properties CEO- The Week

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New Delhi, Jul 20 (PTI) Roseate Hotels and Resorts — which owns luxury properties in India and the UK — is eyeing new markets including Dubai, Italy, France and Switzerland and looking at diversifying its portfolio with a mix of owned as well as managed properties, the company’s CEO Kush Kapoor said.
     In an interview to PTI, Kapoor emphasised upon the need to market India better, streamline visa processes and improve the working conditions for hospitality sector employees in terms of rationalising their working hours and better wages, as key to attracting more foreign tourists to India and having a better talent pool for the hotel industry.
     The Roseate Hotels and Resorts CEO also sought rationalisation of GST rates for the hospitality sector and lowering the number of licences required for hotels to reduce the compliance burden.
     “Yes the focus is very heavily on India. We definitely want to be in the upscale market and would like to grow in tier 2 and tier 3 cities also. For us the most important thing is the location of our hotels. We are getting good proposals from the owners and owning partners who are keen to partner with us in terms of management agreements. So we are also looking into that,” Kapoor told PTI.
     The Roseate Hotels and Resorts CEO further elaborated on its international expansion plans.
     “We are very keen to operate hotels in the United Kingdom, we have five out there. The Noida hotel at the Jewar airport terminal should open in a year’s time. We will also expand our Rishikesh property post this monsoon.
     We have a land bank in Goa so we should also get into the development of the Goa property by this year-end. We are very keen to get into places like Dubai and the key markets of Europe. We are definitely open to places like Italy, France and Switzerland,” Kapoor said.
     He informed that Roseate was looking at properties having anywhere between 30 to 250 rooms.
     “One thing is very clear, we are not going to be a Shaadi or a wedding hotel. We don’t want to have hotels with 300 and 500 rooms. So we are very clear on that part.
     Anything ranges between a 30-room hotel to a 250-room hotel we are very keen to get into that segment,” Kapoor said.
     He stressed that the working conditions for the employees first of all in the hotels needs to get much better.
     “When I am talking about working conditions, I am talking specifically about working hours, that needs to be rationalised. Second, the pay needs to be way high (considering) the amount of time, energy, the employees spend in the organisation,” the Roseate Hotels and Resorts CEO said.
     He asserted that “a lot needs to be done” in terms of marketing India better, urging to look at examples of countries like Dubai, Singapore and Vietnam to attract more foreign tourists to the country.



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