Report: Tata launches asset-light platform for IHCL
IHCL reported a 19 percent YOY rise in first-quarter net profit to $34.3 million
Tata Sons launched a hospitality platform to help Indian Hotels Co. Ltd., parent of Taj Hotels, operate group-owned hotels on revenue-share with low capital use. Pictured is IHCL’s Ginger hotel in Candolim, Goa.
Sreedevi N.R. is a journalist and feature writer whose work has been published in The Times of India and The Economic Times. She holds a Master's in Mass Communication from the Central University of Tamil Nadu and a PG Diploma in Media Writing & Digital Communication from the Central University of Rajasthan. Her expertise includes feature storytelling, in-depth research, and digital journalism with SEO. Sreedevi is fluent in English, Hindi, and Malayalam.
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.”
Most changes took effect Sept. 22 to ease taxes and improve cash flow.
Delhi recently dropped police-issued license requirement for hotels.
THE FEDERATION OF Hotel and Restaurant Associations of India said the country’s new goods and services tax framework on hotels with room tariffs below $84.75 would have an adverse impact. The association, representing more than 100,000 members, urged the government to reinstate input tax credit.
The 56th GST Council’s tax reduction is part of broader reforms introducing a two-slab structure: 5 percent for mid-market services and 18 percent for standard services, with a 40 percent rate for super-luxury, sin and demerit goods. Most changes took effect from Sept. 22, aiming to reduce the consumer tax burden, improve business cash flow and simplify compliance through automated refunds and registration.
Hotels with tariffs below $84.75 face a 5 percent levy without ITC under GST 2.0, which allows businesses to offset tax paid on purchases against tax collected on sales, preventing double taxation, The Tribune reported.
FHRAI said the withdrawal of ITC has raised costs on rentals, utilities, staff and capital spending. It said that hotels in tier II and III cities have been hit hardest, discouraging investment and slowing domestic tourism growth.
Surendra Kumar Jaiswal, FHRAI president, urged government intervention to protect an industry that supports over 60 million jobs and anchors India’s service economy.
“Our industry is one of the largest generators of employment and a key driver of India’s service economy,” Jaiswal said, according to The Tribune. “But the GST framework without ITC has created inequities that threaten our competitiveness.”
He also raised the issue of “copyright harassment,” where hotels and restaurants face overlapping royalty demands from multiple societies, creating legal and financial strain. He called for clearer definitions of society roles and safeguards against unjust litigation.
Jaiswal said the association seeks infrastructure and industry status for the hospitality sector to unlock low-cost credit and promote balanced regional development, especially in smaller towns.
“We are not seeking concessions, but fairness, clarity and parity,” he said. “By restoring ITC, resolving copyright ambiguities and granting infrastructure and industry status, the government can empower hospitality to support the vision of Viksit Bharat 2047.”
Delhi recently removed the requirement for police-issued licenses for hotels, motels and guest houses, a move welcomed by the Hotel Association of India.
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Airbnb contributed $1.45 billion to India’s GDP in 2024, according to Oxford Economics.
Top international sources were the U.S., UK, Canada and Australia.
Non-urban destinations accounted for 16 percent of gross booking value.
AIRBNB CONTRIBUTED $1.45 BILLION to India’s GDP in 2024, supported more than 111,000 jobs and generated $308 million in wages, according to Oxford Economics. North American guests made up nearly half of international Airbnb arrivals and 4 percent of all Airbnb guests in the country.
Oxford Economics’ report, “The Economic Impact of Airbnb in India,” found domestic travelers drove growth, making up 91 percent of Airbnb guests in 2024, up from 79 percent in 2019.
Top international sources were the U.S., UK, Canada and Australia.
Airbnb accounted for 0.5 percent of India’s travel and tourism GDP and 0.2 percent of tourism employment, about one in every 417 jobs, with guest spending of $1.45 billion, the report found. Non-urban destinations made up 16 percent of gross booking value, tripling since 2019, reflecting rising interest in rural and lesser-known locations.
Employment benefits included 38,000 jobs in transport and storage, 19,600 in food and beverage, 16,800 in wholesale and retail and 10,700 in manufacturing, it said.
IHCL and Cemtac are developing a 64-key Gateway hotel in Pahalgam.
An April terror attack in Pahalgam killed 26 people, mostly tourists.
This will be IHCL’s seventh hotel in the state, including the one under development.
TATA’S INDIAN HOTELS Co. Ltd. and Cemtac Cements are developing a 64-key Gateway hotel in Pahalgam, Jammu and Kashmir. This is IHCL’s seventh hotel in statement, including the one under development.
The hotel will include a heated pool, health club and 2,000 square feet of banqueting facilities, the companies said in a statement.
“Pahalgam’s landscapes and cultural heritage make it a compelling destination across leisure, spiritual, adventure and eco-tourism segments,” said Suma Venkatesh, IHCL’s executive vice president for real estate and development. “This signing aligns with our strategy to invest in destinations with scenic appeal and a strong tourism ecosystem.”
A major terror attack in Pahalgam on April 22 killed 26 people, mostly tourists.
“We are thrilled to collaborate with IHCL to bring the Gateway brand to Pahalgam,” said Riaz Ahmad Panjra, Cemtac Cements’ managing director. “This partnership reflects our shared vision to enhance hospitality in the region while showcasing its natural and cultural richness.”
Cemtac Cements, founded in 2008, is a brand in Jammu and Kashmir. Beyond cement, Panjra owns multiple hotels in Srinagar and Pahalgam and has investments in agriculture, diversifying his business portfolio.
Trump’s 50 percent tariff on Indian goods took effect on Aug. 27.
Hospitality businesses in both countries could be hit.
U.S. treasury secretary calls the India-U.S. relationship “very complicated” but expects resolution.
PRESIDENT DONALD TRUMP’S 50 percent tariff on Indian goods took effect Wednesday, while Prime Minister Narendra Modi urged citizens to follow the “Vocal for Local” policy and Swadeshi mantra in his Aug. 15 Independence Day address. Beyond exports such as textiles, the U.S. measure is likely to affect travel, tourism and hospitality in both countries.
The Global Trade Research Initiative told the Financial Times that Indian exports to the U.S. could fall from $86.5 billion this year to about $50 billion in 2026. Textiles, gems, jewelry, shrimp and carpets are expected to be most affected, with exports in these sectors projected to drop 70 percent, “endangering hundreds of thousands of jobs.”
Meanwhile, India also began outreach programs in 40 markets, including the UK, Japan and South Korea, to increase textile exports, Economic Times reported. Officials said 40 select markets, including the UK, Japan, South Korea, Germany, France and Australia, “hold the real key to diversification.” These countries import more than $590 billion in textiles and apparel annually, while India’s current share is around 5 to 6 percent.
‘Trade embargo’
The duties, 16 percentage points higher than China, 31 points higher than most Southeast Asian countries and 35 points above South Korea, have raised U.S. tariffs on Indian goods to levels Nomura described as a “trade embargo,” the Guardian reported.
However, the U.S. hotel associations, including the AAHOA and the American Hotel & Lodging Association, have not commented, though the tariffs raise costs for imported furniture, textiles and kitchen supplies. Higher costs may also increase guest prices, delay renovations and reduce profitability.
The tariff increase may also affect U.S. companies operating in India, including Hilton Hotels & Resorts, Marriott International, Wyndham Hotels & Resorts and Choice Hotels International, all of which have announced expansion plans. Tesla recently opened an outlet in Mumbai.
‘Vocal for Local’
Prime Minister Narendra Modi urged traders and shopkeepers to follow the “Vocal for Local” mantra and buy Indian products, saying this will keep money within India, The Hindu reported.
“Have faith in Indian goods. If you are Indian, buy only goods made in India. Choose items made in India, by Indians,” he said at an event in Delhi. “I want to appeal to my fellow traders and shopkeepers: support me in following the mantra of ‘Vocal for Local’. This will benefit the country and the money spent on the goods you sell will stay within India.”
Modi also highlighted India’s progress in manufacturing, saying 11 years ago the country imported most phones.
“Today, the majority of Indians use Made in India phones,” he said. “Each year we produce 30–35 crore mobile phones and we are also exporting them.”
On Independence Day, Modi emphasised self-reliance under Atmanirbhar Bharat across defence and energy, with initiatives in solar, hydrogen and nuclear power. He announced a Reform Task Force to boost economic growth, reduce red tape, modernise governance and prepare India for a $10 trillion economy by 2047.
Howdy Modi backfires
Congress MP Manickam Tagore criticised Modi over the “Howdy Modi” event, saying India has suffered export losses after the U.S. imposed the double tariff.
“Modiji, remember your slogan ‘Abki Baar, Trump Sarkar’?” he wrote on X. “Today, that ‘friendship’ has cost India Rs 2.17 lakh crore in export losses as the U.S. imposes a 50 percent tariff. Your PR politics = India’s economic disaster.”
Tagore said farmers, MSMEs and exporters are bearing the brunt.
“Farmers, MSMEs and exporters are affected: textile exports from Tiruppur, Surat, and Noida face 5 lakh job losses; the gems and jewellery sector is losing 2 lakh jobs; 3 million livelihoods of Andhra Pradesh shrimp farmers are at risk,” he said. “All due to Modi’s failed diplomacy and slogans abroad.”
‘U.S.-India will unite’
U.S. Treasury Secretary Scott Bessent described the India-U.S. relationship as “very complicated” but expressed hope that “at the end of the day, we will come together.”
“President Trump and Prime Minister Modi have good relationships at that level,” he said in an interview with Fox Business. “And it’s not just over Russian oil. India is the world’s largest democracy, and the U.S. is the world’s largest economy. I think at the end of the day, we will come together.”
The former Marriott executive received the Bharat Gaurav award.
The appointment follows the Accor-InterGlobe joint venture formed earlier this year.
Ranju Alex is Accor Ltd.’s new CEO for South Asia, which includes India, Bangladesh, Pakistan and Sri Lanka. She will lead the company’s business and growth strategy in the subcontinent.
Alex, who joined Marriott International in 2010, served as regional vice president for South Asia, overseeing 170 hotels. The appointment follows the formation of the Accor-InterGlobe joint venture earlier this year, led by Chairman Gaurav Bhushan, to open 300 Accor hotels in India by 2030.
“We are pleased to welcome Ranju to the Accor and InterGlobe family,” said Bhushan. “She brings deep experience, skills, and relationships to our business, and we look forward to building a leading hospitality platform in the region under her leadership.”
Alex began her career with The Oberoi Group in 1993 and held leadership roles at Marriott for more than three decades. She received the Bharat Gaurav award for her contributions to the industry.
“I am delighted to be joining Accor, a company with a comprehensive portfolio of brands in the region,” she said. “It is an honor to take on this role and deliver the Group’s vision in South Asia.”
Accor operates more than 70 hotels in the region and has more than 30 in the pipeline.
Meanwhile, the Accor/Interglobe JV is the exclusive growth platform for the brand’s portfolio in India, focusing on expansion and services for Indian travelers. InterGlobe, parent of IndiGo, is led by Group Managing Director Rahul Bhatia.