Indian Hotels set to widen portfolio with deal for Tree of Life

MUMBAI/NEW DELHI: Tata Group backed Indian Hotels Company Limited (IHCL) has expanded its brand portfolio through a ‘strategic alliance’ with Kolkata’s Ambuja Neotia Group for Tree of Life Resorts & Hotels, recently acquired by the latter.

Kolkata-based Ambuja Neotia Group had announced in November last year that it had acquired Gurgaon-based boutique hotel chain Tree of Life Resorts & Hotels for an undisclosed amount.

The Ambuja Neotia Group owns more than 750 keys across its portfolio managed by IHCL with another 200 keys being added.

“In the first phase, we are solely providing Tree of Life with sales, marketing, distribution, training, loyalty and branding support. As things progress, we will assess further contributions and determine the number of properties to integrate onto the platform,” IHCL MD and CEO Puneet Chhatwal told ET.

“Whether and when we assume management responsibilities will also be decided over time. Initially, the hospitality brand will operate under the SeleQtions platform,” he added.

He said the ‘strategic’ move will facilitate the hospitality chain’s expansion into tier one and tier two cities.“We intend to incorporate additional properties into the new platform that align with our brand rationale,” he added. Harshavardhan Neotia, chairman, Ambuja Neotia Group said the group acquired the chain last year because it recognised a ‘burgeoning’ demand for boutique experiential luxury hotels following the Covid-19 pandemic.

“People began seeking out boutique accommodations, willing to pay a premium for luxury, privacy, and unique experiences, a trend less prevalent before the pandemic when larger hotels dominated. This shift in consumer preferences prompted us to see the potential in this space,” he said.

“The opportunity presented itself when the previous owner sought to divest. Upon discussions with IHCL, we found mutual resonance with the idea. Combining forces made sense as it complemented both our portfolios. Embarking on this venture alone would have been more challenging and time-consuming,” he added.

Neotia previously told ET in November that the group has set its sights on some “stunning and bespoke” destinations such as Jawai, Ranthambore and Ayodhya, and hopes to add to the Tree of Life bouquet in the near future.

“We believe that achieving a portfolio of 100 properties within the next five to six years is feasible. These properties may include those owned by us, managed properties, as well as those under various arrangements,” said Neotia. “With IHCL’s support, our footprint suddenly expands significantly,” he added.

Chhatwal said reaching the 25 hotels mark by the end of 2026 should be doable for the brand.

“There will be a fee structure in place, covering the top line, as well as fee payments to Taj. In the future the arrangement might change when all approvals are in place. In that case the company will be board managed and we will have our separate roles to play,” said Neotia.

IHCL said it is pacing ahead of its market guidance, and has now achieved a portfolio of over 300 hotels with 90 hotels under development.

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