The situation stretched from hotel lobbies to airline counters and tourist sites
More than 50 percent of bookings were reportedly canceled in major Indian cities following “Operation Sindoor,” the country’s response to a terrorist attack on April 22 in the town of Pahalgam. Pictured are supporters of the Bangiya Hindu Mahamanch in Siliguri, India, waving posters in support of the operation. Photo by Diptendu Dutta / Middle East Images / Middle East Images via AFP
Vishnu Rageev R is a journalist with more than 15 years of experience in business journalism. Before joining Asian Media Group in 2022, he worked with BW Businessworld, IMAGES Group, exchange4media Group, DC Books, and Dhanam Publications in India. His coverage includes industry analysis, market trends and corporate developments, focusing on retail, real estate and hospitality. As a senior journalist with Asian Hospitality, he covers the U.S. hospitality industry. He is from Kerala, a state in South India.
FOLLOWING INDIA’S “OPERATION Sindoor,” a cascading crisis has hit the hospitality and travel sectors. More than 50 percent of bookings were canceled in major cities, while online travel platforms suspended international offerings.
Operation Sindoor was India’s response to the April 22 terror attack in the town of Pahalgam in the state of Jammu and Kashmir that killed 26 people, mostly tourists. India and Pakistan have agreed to a ceasefire for now, but the crisis is still having an impact from hotel lobbies to airline counters and tourist sites, according to media reports.
India launched Operation Sindoor on May 7, targeting nine camps in Pakistan-occupied Kashmir and neutralizing an estimated 100 terrorists, Hindustan Times reported, citing Indian Army officials. Pakistan retaliated and both sides have accused the other of violating the ceasefire, triggering a cycle of violence that has spilled into civilian sectors, particularly tourism and hospitality.
“This is a proud week for India, but also a deeply sad one,” said California-based hotelier Sunny Tolani in an interview. “Radical Islamic terrorists attacked a tourist city, our hospitality hub, during a U.S. vice president’s state visit. The brutality of that attack shook us all.”
Cancellations: The new norm
Major hospitality chains, including Tata Group-owned Indian Hotels Company Ltd—the parent of the Taj brand—and Ventive Hospitality, a partner to Marriott International and Hilton Worldwide Holdings in India, reported sharp business declines, according to Financial Express.
“More than 50 percent of bookings across Mumbai, Delhi, Bengaluru and Chennai were canceled in the past week,” an industry executive was quoted as saying in the report. “We expect at least a 40 percent slump in May revenue if this continues.”
HSBC Global earlier estimated that IHCL could face daily EBIT losses of Rs 1–1.5 crore (approximately $120,000 to $180,000), while Ventive may lose around Rs 50 lakh (about $60,000) per day, largely due to reduced inbound international travel. Corporates such as HDFC Bank, Axis Bank, and Tata Communications have also issued travel advisories.
“The safety and security of our guests and associates is of paramount importance to us,” an IHCL spokesperson said, according to the Financial Express. “This is an evolving situation, and we are monitoring developments closely.”
IPL, other events suspended
Corporate events and conferences—a key hotel revenue stream—have been directly affected. One Chennai hotel saw 100 room cancellations for a single event; another in Mumbai's Juhu area reported losses of Rs 1 crore (approximately $120,000) in two days due to scrapped functions.
“Corporate travel and MICE (meetings, incentives, conferences, exhibitions) are feeling the impact, with companies restricting non-essential travel and rescheduling events,” said Mandeep S. Lamba, president and CEO at HVS ANAROCK, a hospitality consultancy firm.
The Board of Control for Cricket in India temporarily suspended the Indian Premier League, a tournament that books more than 30 luxury hotels across 13 cities, including Mumbai, Ahmedabad, and Hyderabad. The suspension deepens losses, though new dates for the tournament have been announced.
Meanwhile, hotels have begun implementing cost-saving measures.
“Top-level meetings were held late last week to determine steps like hiring freezes, limiting gig staff, and reducing heating, lighting, and power consumption,” an executive from a five-star hotel chain told FE.
Properties are also reportedly consolidating guests on specific floors to optimize energy usage.
Boycotts trending
The fallout extends to international markets. On May 10, online travel platform Ixigo suspended all hotel and flight bookings to Turkey, China and Azerbaijan after these countries condemned Operation Sindoor and warned of escalation.
Cox & Kings and Travomint followed suit. Karan Agarwal, director at Cox & Kings, confirmed suspending all new travel offerings to Azerbaijan, Uzbekistan, and Turkey.
“This is driven by our commitment to uphold principles that matter deeply to us and the people of our country,” he said.
“We have decided to support the Indians' call for boycotting Turkey and Azerbaijan,” said Alok Singh, CEO of Travomint.
Long-standing frustrations
For Tolani, the situation has reopened old wounds.
“Since 1947, India has pursued diplomacy,” said Tolani, who is also the founder and CEO of The Prince Organization. “We are rooted in non-violence. But what has that gotten us? Ceasefire violations, terror attacks, and now full state funerals for terrorists.”
He referred to Pakistan’s decision to give state burials—typically reserved for heads of state—to those killed in Operation Sindoor.
“That wasn’t a condemnation; it was an endorsement,” Tolani said. “Pakistan’s civilian government is powerless. The army and ISI run the country. Not one democratic administration has completed a full term in over 70 years.”
Tolani said he has reached out to global leaders, including U.S. President Donald Trump and Chinese President Xi Jinping. Still, he believes only India and the U.S. can dismantle the regional terror infrastructure.
“Let’s not forget, many of the 9/11 terrorists trained in the same camps targeting India today. These are not isolated threats, they are globally intertwined.”
Hope amidst hostility
Despite the tension, Tolani expressed empathy for the Pakistani people.
“Many Indians have family across the border. I have cousins in Pakistan,” he said. “Our bloodlines are connected. But they’re suffering under a military stranglehold.”
He suggested that countries like Bangladesh and China could help by creating jobs and dignity.
“Give the people something dignified—factories, jobs, hope,” Tolani said. “This constant drumbeat of declaring India and the U.S. as enemies is ruining them.”
Neemrana Hotels is working with Uttar Pradesh and Madhya Pradesh to restore heritage sites.
The two sites are Baruasagar Fort in Jhansi, Uttar Pradesh, and Raja Rani Mahal in Chanderi, Madhya Pradesh.
Neemrana aims to convert them into “revenue-generating non-hotels.”
INDIA’S NEEMRANA HOTELS recently signed agreements with the governments of Uttar Pradesh and Madhya Pradesh states to restore and adapt heritage structures under a public-private partnership. The two sites are Baruasagar Fort in Jhansi, Uttar Pradesh, and Raja Rani Mahal in Chanderi, Madhya Pradesh.
Neemrana aims to convert them into “revenue-generating non-hotels,” a term it uses for heritage sites adapted for hospitality without typical hotel conventions.
The Baruasagar project is scheduled for completion by 2027, while the Madhya Pradesh project is targeted for 2028, Economic Times reported.
Baruasagar Fort’s phase one includes 25 guest rooms, a restaurant, a pool, a spa, spaces for cultural activities and facilities for small destination events. Restoration of Raja Rani Mahal in Chanderi’s Inner Town will begin with 10 to 12 guest rooms and is expected to retain the site’s architectural integrity.
A project representative said the goal is to retain historical authenticity while adding functional hospitality infrastructure.
Neemrana began operations in 1991, when co-founders Aman Nath and Francis Wacziarg opened the Neemrana Fort-Palace as a 12-room hotel after acquiring it in 1986. The company, now led by Co-founder and Chairman Aman Nath and CEO Sonavi Kaicker, operates more than 15 heritage hotels across India.
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Tata Sons launched a hospitality platform for Indian Hotels Co. Ltd., enabling revenue-share operations on group-owned assets.
The first asset on the platform is a Ginger hotel near Kolkata airport.
IHCL is set to reach 400 hotels by the end of July and targets 700 by 2030.
TATA SONS LAUNCHED a new hospitality platform to support Indian Hotels Co. Ltd., enabling it to operate group-owned hotels on a revenue-share model while staying asset-light. The first project under this initiative is a 195-room Ginger hotel under construction near Kolkata airport.
Tata Sons will own the building and IHCL will operate the hotel. A revenue-sharing lease is planned once the hotel opens, Financial Express reported. Tata Sons is the holding company and main shareholder of the Tata Group, which includes entities such as Indian Hotels Co. Ltd., operator of the Taj, Vivanta and Ginger brands.
“Over time, this could potentially lead to the creation of an asset platform, which could become a big strategic enabler for IHCL,” IHCL managing director Puneet Chhatwal said in the Financial Express report.
The model supports IHCL’s capital-light strategy, despite ending the first quarter with $354 million in cash reserves. It plans to spend $116 to $174 million annually over the next two to three years on new properties, renovations and digital upgrades.
Meanwhile, IHCL reported a 19 percent year-on-year rise in consolidated net profit for the first quarter of this fiscal to $34.3 million, driven by growth in hotel and non-hotel segments, up from or $28.7 million a year earlier.
“It is the beginning of a journey where Tata Sons would gain from an asset platform and we gain in doing a revenue share. We will stay capital-light but benefit fully without development risk, construction risk, delays, depreciations, or future investments,” Chhatwal said.
Upcoming IHCL projects include the $290 million Taj Bandstand in Mumbai and two Taj resorts in Lakshadweep -- Suheli and Kadmat. The group has 143 hotels in the pipeline and plans to add 30 to 40 properties annually. It is on track to reach a 400-hotel portfolio by the end of July and aims for 700 hotels by 2030.
“IHCL continued its growth momentum with 12 signings, taking the portfolio to over 390 hotels and opened six new hotels in the quarter,” Chhatwal said. “Taj remains an icon in the global hospitality landscape. The hospitality sector, despite geopolitical headwinds, continues to show resilience and sustained growth.”
ITC Hotels posted record quarterly profit and revenue in the first quarter of fiscal 2026, with revenue up 20 percent to $103.2 million and profit up 53 percent to $16.08 million.
The portfolio has grown to more than 200 hotels, with 143 operational and 58 in the pipeline.
Welcomhotel Prayagraj, ITC’s seventh property in Uttar Pradesh, includes 60 rooms and banqueting space.
INDIA’S ITC HOTELS posted its highest-ever quarterly profit and revenue in the first quarter of fiscal year 2026, with consolidated revenue up 20 percent to $103.2 million and profit rising 53 percent to $16.08 million, according to a Times of India report. Meanwhile, ITC launched Welcomhotel Prayagraj in Uttar Pradesh, bringing its total to seven properties in the state, with six more in the pipeline.
The company's portfolio has grown to more than 200 hotels, with 143 operational and 58 in the pipeline, the Times said, citing a company statement. Over the past 24 months, it recorded 55 signings and 25 openings.
ITC is targeting 220 operational hotels and over 20,000 keys by 2030, the statement said. Its asset-right strategy aims to drive capital-efficient growth through partnerships with asset owners, leveraging brand credentials and providing operational expertise. Its presence has expanded to tier 2 and tier 3 cities, where demand for premium hospitality is rising.
It presently has 58 hotels in the pipeline with more than 5,300 keys.
ITC Ltd demerged its hotel business into a separate entity, ITC Hotels Ltd, effective Jan. 6, enabling both companies to pursue separate growth paths.
Welcomhotel Prayagraj
ITC Hotels’ Welcomhotel Prayagraj is operated under a management contract, aligns with the company’s asset-right strategy. The property features 60 rooms and suites with city views, along with indoor and outdoor banqueting spaces for weddings, gatherings and corporate events, ITC said in a statement.
“It is with great pride that we unveil Welcomhotel Prayagraj in a city of profound cultural and spiritual significance,” said Anil Chadha, ITC’s managing director. “This expansion not only strengthens our footprint in Uttar Pradesh but also reflects our commitment to delivering meaningful hospitality experiences—celebrating the region’s heritage while upholding the highest standards of service. Prayagraj, with its enduring appeal and spiritual depth stands as a beacon of India’s rich history and offers a destination that resonates deeply.”
Prayagraj, located near the confluence of the Ganga, Yamuna and Saraswati rivers, reflects India’s spiritual and intellectual heritage, the statement said. The hotel is close to key sites including the ghats of Triveni Sangam and Allahabad Fort. It offers guided heritage walks, spiritual trails to Shri Bade Hanuman Ji Mandir and excursions to Khusro Bagh and the Kumbh Mela grounds.
JK Agrawal of the Owning Board said the project marks a milestone, combining their vision for the city with ITC Hotels’ expertise in hospitality.
“Our purpose has always been to create developments that serve travelers and contribute to the local community and economy,” he said. “This hotel reflects that belief, a recognition of the city’s identity, with a promise of quality and care.”
Tata Sons and Tata Trusts formed a $58 million welfare trust for victims of the June 12 Air India crash, contributing $29 million each.
Tata Sons, established in 1917 and registered in Mumbai, is the Tata Group’s holding company; Tata Trusts collectively own 66 percent of it.
Tata Sons reacquired 100 percent of Air India in January 2022 through its subsidiary Talace Pvt Ltd.
TATA SONS ESTABLISHED a $58 million, or Rs 500 crore, welfare trust for victims of the June 12 Air India crash. The AI-171 Memorial and Welfare Trust is registered in Mumbai.
The Air India flight from Ahmedabad to London crashed shortly after takeoff, killing 260 people, including 19 on the ground. A preliminary report by the Aircraft Accident Investigation Bureau found that fuel supply to the engines was cut off. A crane is removing the tail section from the wreckage.
Tata Sons and Tata Trusts have each committed $29 million or Rs 250 crore to the trust, Tata said in a statement. The fund will provide $116,100, or Rs 1 crore, as ex gratia to the families of those who died. It also will support medical treatment for the injured and reconstruction of the B.J. Medical College Hostel, which was damaged in the crash.
The trust will be managed by a five-member board of trustees. The first two appointees are S. Padmanabhan, a former Tata executive and Sidharth Sharma, General Counsel at Tata Sons. Additional trustees will be appointed. The trust will begin operations after registration with tax authorities and completion of other formalities.
Air India was founded by J.R.D. Tata and began operations on Oct. 15, 1932. The Government of India nationalised it in March 1953, taking full ownership from Tata Sons. In January 2022, Tata Sons reacquired 100 percent of Air India through its subsidiary Talace Pvt Ltd.
Tata Sons Pvt Ltd., established in 1917 and registered in Mumbai, is the holding company of the Tata Group. It holds stakes in all group companies and owns the Tata trademarks. Tata-branded companies operate under the Brand Equity and Business Promotion Agreement, which requires adherence to the Tata Code of Conduct and Tata Business Excellence Model.
Tata Trusts, endowed by Tata family members, collectively own 66 percent of Tata Sons. The largest trusts include the Sir Dorabji Tata Trust and the Sir Ratan Tata Trust. Tata Trusts appoint one-third of the Tata Sons board and hold significant governance influence. Noel Tata was appointed chairman of Tata Trusts in October 2024 and joined the Tata Sons board in November 2024.
Tata Group companies employed more than 1 million people in 2023–24 and recorded total revenue of $165 billion. As of March 31, 2024, the 26 listed Tata companies had a combined market valuation of $365 billion, according to the group’s website.
N. Chandrasekaran has served as chairman of Tata Sons and Tata Group since January 2017.
Air India to partially restore international wide-body schedule from Aug. 1 after 15 percent cut following June 12 AI 171 crash.
Delhi–New York (JFK) and Mumbai–New York (JFK) cut to six weekly; Delhi–Newark to four.
Revised schedule takes effect in August; full restoration expected from October.
AIR INDIA WILL partially restore its international wide-body schedule from Aug. 1, following a 15 per cent reduction after the June 12 crash of flight AI 171 on the Ahmedabad to London Gatwick route, operated by a Boeing 787. Delhi to New York’s JFK International Airport and Mumbai to New York (JFK) will operate six weekly flights each, down from seven, while Delhi to Newark, New Jersey, will drop to four from five.
The announcement follows the release of the preliminary report on the AI 171 crash, which killed 260 people—241 of 242 passengers and 19 on the ground. The report identified the primary trigger as both engine fuel control switches moving from “RUN” to “CUTOFF” in quick succession after lift-off. Investigators are examining the cause of this transition. The report found no fault with Air India and made no recommendations for other Boeing 787 or GE engine operators.
Following the Directorate General of Civil Aviation’s mandated safety inspections of Air India’s 787 fleet, the airline conducted its own checks and adopted a cautious operating approach, resulting in delays and cancellations in the following week.
Safety pause and partial restoration
Air India announced a 15 percent cut in international wide-body flights on June 18. Airspace closures over Pakistan and parts of West Asia, along with night curfews at several overseas airports, added to the disruption.
“The safety pause enabled Air India to conduct additional precautionary checks on its Boeing 787 aircraft and accommodate longer flying times due to airspace closures over Pakistan and the Middle East,” the airline said. “The partial resumption will restore some frequencies from 1 August, relative to July, with full restoration planned from Oct. 1.”
The restoration includes changes to the earlier schedule.
“As the schedule reductions implemented as part of the Safety Pause were in effect until July 31 and the restoration to full operations is being phased, some services initially planned between Aug. 1 and Sept. 30 will be removed from the schedule,” the statement said. “Air India is proactively contacting affected passengers to offer rebooking on alternative flights or a full refund, as per their preference. Air India apologizes for the inconvenience.”