The fault lines run between Ravi Ghai, the son of Kwality Ice Creams founder I.K. Ghai, and his son Gaurav Ghai. The dispute involves shares ofGraviss Hospitality Ltd, the ₹300-crore market capitalization company that owns and operates the InterContinental Hotel on the city’s iconic Marine Drive promenade.
As part of a family settlement agreement signed in 2021 and a supplementary agreement signed in 2023, Ravi Ghai transferred all his stake in all the group’s private companies to his son for a payment of ₹105 crore. Mint has seen a copy of these agreements.
Ravi Ghai also received payments recently when the Graviss group exited a joint venture making non-dairy cream. In all, he received ₹235 crore net of taxes between 2021 and 2024.
As per the family settlement agreement, the father, 83, was to hold on to 51% of the promoters’ stake in listed Graviss Hospitality Ltd and remain as the non-executive chairperson. He would receive monthly payments worth ₹1.5 crore a year as business expenses from the listed company.
Upon his demise, his shares in the company were to be transferred to his son, Gaurav Ghai, who holds 49% of the promoters’ stake. In all, the promoters owned 74.92% of Graviss Hospitality as of 30 June.
However, Ravi Ghai has refused to honour this agreement, his son Gaurav has alleged.
This was due to the family settlement agreements failing to achieve their desired outcome of family harmony, said an email by Vimadalal & Co., former lawyers of Ravi Ghai–Mint has reviewed the email.
Gaurav did not invite his father to his son’s wedding in Dubai, causing him humiliation, alleged the email. Monthly payments from the listed company to the senior Ghai also stopped from March this year, the lawyer claimed.
Citing these reasons, the father terminated the two family settlement agreements, the letter said.
Subsequently, in May, the two camps agreed to appoint former Bombay High Court chief justice R.D. Dhanuka as an arbitrator to resolve their disputes, according to the letters between the lawyers of the two camps, which Mint has reviewed.
However, the same month, Ravi Ghai filed a police complaint against his son and his family members, alleging that he was made to sign the 2023 supplement agreement without his explicit knowledge.
In June, the senior Ghai emailed justice Dhanuka, alleging that Vimadalal had terminated the family settlement agreements and appointed justice Dhanuka as the arbitrator without his consent. The former high court chief justice has since recused himself from the matter.
When contacted, Sandip Vimadalal, law firm’s proprietor, refused to comment citing that it was privileged communication between an attorney and their client.
Meanwhile, Gaurav Ghai said after reviewing the family settlement agreements and conducting a preliminary enquiry, the Mumbai Police found no criminality and have dismissed the complaint filed by his father without filing any first information report (FIR).
“This is the last legacy asset that my grandfather I.K. Ghai bought. The last thing I want is for this to go away. I am fighting to protect my family’s legacy,” Gaurav Ghai said.
In an emailed response to Mint’s queries, Ravi Ghai said, “I have categorically denied the existence and validity of any Supplemental Family Settlement Agreement allegedly dated 25.08.2023.” He alleged that his signatures in the agreement had been forged. He also cast aspersions on the notary and attestation authorities who signed the agreements, saying he never visited a notarial authority.
Ravi Ghai also disputed that he received ₹235 crore as part of the two family agreements.
The senior Ghai, however, acknowledged the closure of his complaint by the Mumbai Police. He said he was aggrieved by the closure and now has approached the Bombay High Court with the same complaints he had lodged with the police.
The disputed company represents about 5% of the revenues of the Graviss Group, Gaurav Ghai said. The group’s main business is manufacturing ice creams and other food products. The group is the sole manufacturer and distributor of Baskin Robins in India. It also operates the Kwality brand outside India in markets like the Middle East and UK.
Hindustan Unilever Ltd had acquired the Kwality brand from Ravi Ghai and his family in 1995. The consumer goods major sells Kwality Wall’s branded ice cream in India.
The hospitality industry has undergone a seismic shift in the past five years, reshaped by pandemic-driven travel patterns, remote work adoption, and a growing demand for flexible, long-term accommodations. Among the most resilient and lucrative segments emerging from this transformation is the extended-stay hotel sector. For investors and developers, this category offers a compelling blend of strategic real estate development opportunities, operational efficiency gains, and strong cash flow potential.
Post-Pandemic Resilience and Market Fundamentals
Extended-stay hotels, particularly those in the midscale segment, have demonstrated remarkable resilience since 2020. While traditional hotels faced occupancy collapses during the pandemic, extended-stay properties maintained occupancy levels 10 percentage points higher than the industry average in 2024. This durability stems from their alignment with evolving consumer needs: – Remote Work and Bleisure Travel: The rise of digital nomads and hybrid work models has created a sustained demand for accommodations that blend work and leisure. Extended-stay hotels, equipped with kitchenettes, laundry facilities, and co-working spaces, cater to this demographic. – Infrastructure and Relocation Demand: Industries like healthcare, construction, and energy require temporary housing for crews, while families relocating for job opportunities increasingly prefer extended stays over short-term rentals. – Cost Efficiency for Developers: Median development costs for midscale extended-stay hotels stabilized at $167,000–$169,000 per room in 2024, significantly lower than full-service or luxury properties. This cost advantage, combined with steady cash flows, makes them attractive in a high-interest-rate environment.
Strategic Real Estate Development in the Midscale Segment
Developers are capitalizing on the extended-stay boom through innovative strategies tailored to current economic realities: 1. Conversion Projects: Repurposing underperforming limited-service hotels into extended-stay properties has become a cost-effective solution. These conversions reduce construction timelines, lower capital expenditure, and align with market demand for long-term stays. 2. Suburban and Secondary Market Focus: With urban centers seeing slower recovery, developers are prioritizing suburban areas near business parks, hospitals, and infrastructure hubs. These locations offer lower land costs and strong demand from long-term tenants. 3. Pre-Development Planning: High construction and financing costs have pushed developers to focus on pre-development activities—securing entitlements, conducting market feasibility studies, and engaging in architectural design—while delaying construction until conditions improve.
The Q1 2025 U.S. hotel development pipeline underscores this trend, with extended-stay hotels accounting for a disproportionate share of new projects. Brands like Home2 Suites by Hilton and TownePlace Suites by Marriott are leading the charge, leveraging their brand equity to attract investors and guests alike.
Operational Efficiency: The Key to Profitability
Extended-stay hotels achieve profitability through a combination of cost controls and tailored guest experiences: – Reduced Labor and Maintenance Costs: Weekly housekeeping, lower staff turnover, and reduced wear-and-tear on rooms cut labor and maintenance expenses. For example, a 100-room extended-stay property can reduce daily housekeeping costs from $3,000 to $420 by shifting to weekly cleaning. – Energy Management: Predictable occupancy patterns allow for optimized energy use, with HVAC systems operating at consistent levels and utility contracts negotiated for long-term savings. – Technology Integration: Digital tools like self-check-in kiosks, mobile apps, and dynamic pricing systems streamline operations and enhance guest satisfaction. Advanced revenue management systems have boosted RevPAR by up to 19% for some properties. – Customized Amenities: In-room kitchens, laundry facilities, and co-working spaces cater to extended-stay guests, reducing reliance on in-house food and beverage services while differentiating the property from competitors.
Investment Implications and Strategic Recommendations
For investors, the extended-stay segment offers several advantages: – High-Yield Opportunities: Attractive cap rates (often 4.5–6%) reflect strong fundamentals and lower perceived risk compared to other hotel categories. – Resilience in Economic Downturns: Extended-stay hotels have historically outperformed during recessions due to their alignment with cost-conscious consumers and long-term demand drivers. – Alignment with Demographic Shifts: The rise of remote work, healthcare staffing needs, and infrastructure projects ensures sustained demand for years to come.
Actionable Steps for Investors: 1. Target Midscale Developers: Prioritize companies with a track record in converting or developing midscale extended-stay hotels, particularly those with brand affiliations (e.g., WoodSpring Suites, Hyatt House). 2. Focus on Suburban Markets: Allocate capital to properties in secondary markets near hospitals, business parks, or infrastructure projects, where demand for long-term stays is most robust. 3. Evaluate Operational Efficiency Metrics: Look for operators with strong energy management systems, low labor turnover, and technology-driven revenue optimization tools. 4. Monitor Cap Rate Trends: Extended-stay hotels have maintained stable cap rates despite broader market volatility, making them a defensive play in uncertain economic climates.
Conclusion
The extended-stay hotel sector is not just a post-pandemic anomaly—it represents a fundamental shift in how people travel, work, and live. For investors willing to navigate the complexities of real estate development and operational efficiency, this segment offers a rare combination of resilience, profitability, and long-term growth potential. As the market continues to evolve, those who position themselves to capitalize on the extended-stay boom will likely reap significant rewards.
Fairmont Hotels & Resorts, part of Accor, has opened a new 327-key property in Udaipur in partnership with Keystone Resorts Pvt. Ltd.
Set on an 18-acre estate in Rajasthan’s Aravalli Hills, Fairmont Udaipur Palace draws inspiration from Mewar architecture, offering a blend of traditional craftsmanship and contemporary design. The property features 327 rooms and suites, eight dining concepts, and over 13,000 sqm of event space across indoor and outdoor venues.
“The opening of Fairmont Udaipur Palace marks a defining moment in Fairmont’s journey in India,” said Omer Acar, CEO of Raffles & Fairmont Hotels & Resorts. “This new palace reflects Fairmont’s commitment to honouring the spirit of each location we enter.”
The Jewel of Udaipur Suite features a private pool, spacious terrace, bespoke interiors, and panoramic views. Photo Credit: Accor
Accommodation options range from Fairmont Rooms to the Royal Maharaja and Maharani Suites, which feature private pools and expansive terraces.
Dining options include all-day restaurant Bahaar, palace bar Dahaad, Indian restaurant Zaika, and rooftop lounge Sitara, with more venues such as Celeste and The Alchemist set to open in the coming months.
The hotel also features the 1,115 sqm Fairmont Spa & Salon, Fairmont Fit Gym, and an activity zone for guests of all ages.
“We wanted to create a destination within a destination –where every guest feels like a modern Maharaja or Maharani,” said Somesh Agarwal, chairman and managing director of ROCKWOOD Hotels & Keystone.
Udaipur’s newest property also caters to weddings and corporate events, with venues such as Jewel Ballroom, the open-air Mehfil courtyard, and multiple terraces and lawns. A private helipad provides direct access for guests.
Vishrut Gupta, general manager of Fairmont Udaipur Palace, added: “Our vision was to create more than a hotel – a living palace that stirs emotion, celebrates culture and offers experiences that linger in memory.”
Chris Bowling, head of digital and consumer marketing at BWH Hotels GB, shares some advice for independent hoteliers on how to remain competitive and visible.
There is clearly great potential for artificial intelligence to reshape how guests discover and book hotels.
We’re already seeing early moves in this direction, with companies like ChatGPT developing e-commerce capabilities and platforms such as Perplexity experimenting with shopping features. These tools haven’t yet mastered hotel bookings – but when they do, the shift could be significant.
The risk for independent hotels is that this change won’t happen evenly across the sector. Online travel agents are in a prime position to move quickly. With deep resources and well-established technology, they’re well placed to integrate with new AI-driven platforms as they emerge. Their speed and scale mean they could gain even greater dominance in the booking journey, leaving independent properties more reliant on third-party distribution.
That doesn’t mean independent hotels are out of options – but they must start preparing now. A key first step is ensuring that the property’s digital presence is structured, accurate and consistent.
AI platforms surface content that is easy to interpret. If a hotel’s website is slow to load, short on useful content or not optimised for mobile, it risks becoming invisible. Equally, listings across Google, Apple Maps and social media channels need to be regularly updated to remain relevant to both users and AI search tools.
Trust will also be an important factor in the adoption of AI booking tools. A June survey of more than 2,000 of BWH Hotels GB’s BW Rewards members found that only 11 per cent had used an AI tool to book a hotel. However, 57 per cent said they would consider doing so, but only if they trusted the brand behind the tool.
This reinforces the idea that AI won’t just be a technological shift; it will also be a reputational one. Guests are more likely to follow trusted brands into emerging booking environments, which is a real opportunity for hotels that invest early in trusted partnerships and recognisable platforms.
Independent hoteliers also need to take ownership of their guest data. As AI becomes more personalised, relying on a third party for all guest interaction creates a serious disadvantage. Investing in a direct booking engine, a CRM system or even a simple email capture strategy can give hoteliers the insight needed to personalise offers, encourage return visits and reduce dependency on OTAs.
That said, few independent properties have the time, budget or in-house knowledge to build AI integrations from scratch. This is where partnerships matter. Working with technology providers – or joining a brand that is looking to embrace AI infrastructure – can potentially give hotels access to tools that would otherwise be out of reach. This could include integrations with voice search, AI chat platforms and personalised booking engines.
The final piece is skills. AI will touch every part of the business, from operations to marketing to front desk. A basic understanding of how digital systems work – and how to evaluate new technology – can make a meaningful difference. Teams don’t need to become experts, but they do need to feel confident in adapting to a rapidly changing landscape.
In a market where visibility is everything, independent hotels that take action now – building strong digital foundations, developing data strategies and choosing the right partners – will be far better placed to thrive when AI becomes a central part of how people travel.
You must be logged in to post a comment Login