Ginger Hotels Aims to Double Footprint in East and Northeast within 3-5 Years.

Tata Group's budget hospitality brand, Ginger Hotels, plans to double its presence in East and Northeast India within the next three to five years, according to a senior company official. Currently, Ginger Hotels, operated by Roots Corporation Ltd (RCL), a subsidiary of the Indian Hotels Company (IHCL), has 11 properties with 876 rooms in the region and seven more in the pipeline, expected to add 605 rooms.

The brand is leveraging growth in smaller cities beyond major metropolitan areas. "It is very interesting, we talk about how India's story is percolating beyond the top 10 cities... I think that's really playing out in our expansion," said Deepika Rao, IHCL Executive Vice President - New Business and Hotel Openings, and chairperson of Roots Corporation.

The upcoming hotels in Patna, Kolkata, Asansol, Paradeep, Guwahati, Jorhat, and Dibrugarh are expected to be operational within two to three years. Rao highlighted the significance of the East and Northeast markets, noting that out of a total of 91 Ginger Hotels, with 66 in operation for IHCL, 18 are in these regions, accounting for nearly 20 percent of their portfolio.

With Ginger's strong presence in other parts of India, the potential for growth in the East and Northeast is substantial. "Quite easily we can double our footprint here (the East and Northeast) in the medium term itself. It really has the potential to double, and we are evaluating many more opportunities in this part. I'm quite sure we will be able to double this footprint in the next three to five years," Rao asserted.

The East and Northeast markets are attracting a diverse range of guests, including corporate clients, small and medium enterprise business owners, leisure and family travelers, and sports enthusiasts attending various events. "All in all, it's very well represented. We do occupancies in this region closer to 70 percent. So, it's quite robust across multiple segments," Rao added.

In December 2018, Ginger introduced the lean luxe segment with a new brand identity to cater to diverse customer segments and price points. Overall, Ginger Hotels aims to increase its total number of properties to 125 by 2025 from the current 91 hotels.

BS