November 2024 | 1049 words | 4-minute read
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Holidaymakers exploring the domestic circuit in India recently discovered the enticing prospect of a brand-new adventure with the launch of the Gateway Bekal in Kerala, which invited them to revel in a unique brand of hospitality that reflects the culture and ethos of the city it inhabits.
The hotel marks the launch of the reimagined Gateway Hotels and Resorts, a full-service brand in Indian Hotels Company Ltd’s (IHCL) food and beverage and banquet business.
Gateway, positioned in the upscale category of hotels, is part of the company’s strategy to build a portfolio of brands across different price points, so as to service different customer segments. “It is an ideal fit to capture growth opportunities in micro markets of metros and Tier 2 and Tier 3 cities,” says Puneet Chhatwal, Managing Director and Chief Executive Officer, IHCL.
The first phase of the launch commenced with the opening of Gateway Bekal along with the migration of four operating hotels in Nashik, Coonoor, Madurai and Chikkamagaluru. “The aim is to scale the current brand portfolio of 17 hotels to 100 hotels across India by 2030, across state capitals, commercial centres, smart cities, emerging suburbs in metros and leisure destinations,” says Mr Chhatwal, who is confident of quickly getting to a critical mass of 50 operating hotels.
New opportunities
Gateway is the latest addition to IHCL’s rich and varied bouquet of brands. These include Taj, the iconic luxury brand; SeleQtions, a named collection of hotels in and around key metros; Vivanta, sophisticated upscale hotels leaning towards business needs, and Ginger, in the lean luxe segment, all of which make up the 340+ hotels in IHCL’s portfolio.
Gateway is an ideal fit to capture growth opportunities in micro markets of metros and Tier 2 and Tier 3 cities - Puneet Chhatwal, Managing Director and CEO
Into this rich mix, IHCL has introduced Gateway to cater to the increasing number of domestic travellers and demand from the events and wedding industries for quality hospitality in smaller cities. In FY24, the buoyancy of domestic demand was behind a 17% growth in IHCL’s total revenue of ~₹7,000 crore. Positioned alongside Vivanta in the portfolio, Gateway is well poised to cater to the large number of Indians residing in Tier 2 and 3 cities and is closely aligned with IHCL’s growth strategy of finding the ‘right brand for the right market’. What makes brand Gateway especially attractive is the experience of the group’s famed hospitality at a price point that is aligned with local market dynamics.
The hospitality industry has been seeing a marked upswing since the pandemic and is expected to grow at a ~10.8% compound annual growth rate (CAGR) over the next three years on the back of rising affluence, consumerism, premiumisation, and a growing appetite for travel. “India’s robust economic growth has led to a surge in demand for hotel accommodations especially in Tier 2 and 3 cities, where we have seen almost 50% growth in the last decade with more than 70% of the industry’s pipeline coming from these cities,” says Mr Chhatwal. “As India’s story changes, there will be new needs and wants that arise. The increase in discretionary spending on leisure will change hospitality from a discretionary sector to a consumer sector.”
In 2023, the upscale segment, where Gateway is positioned, had a 67.4% occupancy — the highest in the last 15 years, according to Horwath HTL — and this number is only expected to grow. Gateway offers IHCL the opportunity to expand into smaller cities and underserved markets with a tailored offering. “Instead of being reactive, we will be proactive so that we are rightly positioned to take advantage of the changes that will happen in the marketplace over the next three to five years,” says Mr Chhatwal.
Gateway Hotels and Resorts will predominantly follow an asset-light business model with select investments in strategic locations.
A brand renewed
The reimagined Gateway hotels have been designed to celebrate the Indianness of each destination, embracing the rich tapestry of local ethos and culture, fostering familiarity and warmth. “Every Gateway hotel serves as a unique canvas, showcasing the city’s character through art, design, and cultural nuances,” says Leah Tata, Vice President and Brand Leader, Gateway Hotels and Resorts, IHCL. “Through local partnerships, regional cuisine, and insights into hidden gems, these hotels serve as gateways to the heart and soul of their respective destinations.”
The beauty of Gateway lies in its inherent potential for reinvention; the opportunity to design each hotel and its offerings and transform it into an aesthetic and tangible counterpoint to the city in which it is located, thereby carving a distinctive identity for itself. At Gateway Bekal, a riverside retreat spread across 30 acres, guests are offered curated experiences, such as visiting the nearby Bekal Fort, indulging in birdwatching and nature walks or exploring the backwaters on a houseboat. Elsewhere, in Sawai Madhopur, an upcoming Gateway destination in Rajasthan, guests can enjoy an array of culinary delights and host grand celebrations and corporate events at an extensive banquet space measuring over 15,000sq ft. They can also enjoy local attractions such as the Ranthambore National Park, Ranthambore Fort and the National Chambal Gharial Sanctuary.
Every Gateway hotel serves as a unique canvas, showcasing the city’s character through art, design, and cultural nuances - Leah Tata, Vice President and Brand Leader, Gateway Hotels and Resorts, IHCL
In the hotel, guests can expect “Culinary options like a Tea Lounge, an all-day dining restaurant, a specialty cuisine restaurant and a bar, extensive meeting and celebration spaces, both indoor and outdoor, as well as wellness and recreation facilities that will focus on the pool experience, fitness centre and various kids’ activities,” says Ms Tata.
She adds that every customer touchpoint, from the check-in experience to the restaurant, room and reception décor to the cuisine on offer, will be customised to reflect the uniqueness of each city.
Promising future
In FY24, the company reported its highest-ever revenue — ₹6,952 crore — and a profit after tax of ₹1,259 crore and expects to continue to deliver double-digit revenue growth with new businesses at 30% in the year ahead. As IHCL continues on its growth momentum, Gateway offers an opportunity to explore newer formats, showcase the famed Taj brand of hospitality at offbeat destinations and strengthen its competitive advantage.
- Cynthia Rodrigues
