Amid the COVID-19 pandemic and slump within the hospitality business owing to lockdown and travel restrictions, ITC Hotels is optimistic about domestic tourism prospects and planning to increase the number of properties under the brand Welcomhotel.
The Rs 45,000 crore hospitality arm of ITC, mentioned it was planning to increase the number of properties under the model Welcomhotel to 25 in a yr’s time from 19 now. “ITC Welcomhotel will be a 25 property brand over next 12 months,” an ITC official informed PTI.
The brand opened two properties in a span of six months. Welcomhotel Tavleen Chail was unveiled on Thursday and Welcomhotel Shimla about six months ago. And Welcomhotel Ahmedabad and Welcomhotel Port Blair were relaunched in the March quarter.
“Collaborating with like-minded partners who bring unique hospitality experiences has further strengthened ITC Hotels footprint throughout the length and breadth of the nation,” ITC executive director Nakul Anand mentioned.
The pandemic-induced lockdowns had blown hard on the hospitality sector and not all were able to sail by. Hyatt Hotels Corporation has suspended operations at Hyatt Regency hotel in Mumbai and mentioned the property will stay closed till further notice.
“With no funds forthcoming from Asian Hotels (West) Ltd, the owner of Hyatt Regency Mumbai, to maintain the operations of the hotel, a decision has been taken to temporarily suspend all operations for Hyatt Regency Mumbai,” the hotel had mentioned.
With the addition of the premier mountain resort at Chail, a managed property of Welcomhotel brand, the brand currently boasts a portfolio of around 19 properties throughout India, officials mentioned.
ITC mentioned its hotel business segment EBITDA was in March quarter at Rs 25 crore against breakeven in the previous quarter and extreme focus on cost reduction and controllable cash fixed costs down 41 percent in FY21.
Analysts speaking about the future mentioned hotel majors are gearing for the rush with vaccination going on steadily and the economy opening up gradually, demand will spurt after the long lull. The railway reservations have already jumped 230 percent.
Airlines also expect a similar spurt in demand.
“Vocal for locals is gaining more ground as individuals prefer to travel motorable distances post pandemic. Hence, domestic tourism is on the rise. At ITC Hotels we’ve always showcased destination India and this is the appropriate opportunity to cater to the public demand for experiential stays,” an ITC official mentioned. ITC Hotels has 100 properties across 4 brands in over 70 locations.
