IHCL, the parent brand behind Taj Hotels, is investing in airport properties as a growth area. In its latest move, IHCL has invested $6 million in its subsidiary, Zarrenstar Hospitality, to develop a hotel near Cochin International Airport. The 112-room property under the Taj brand is set to open in November, representing a $12 million investment aimed at capturing the high-traffic market associated with airport properties. With this move, IHCL continues to expand its portfolio of airport properties, including hotels at Bangalore Airport, Goa Airport, Coimbatore Airport, and Mumbai Airport.
IHCL’s strategic expansions and investments in airport properties have been successful in growing its market presence. The company signed 16 hotels and opened six new properties in the first quarter of fiscal 2025, surpassing the milestone of 325-plus hotels in its portfolio. IHCL is also rebranding Gateway as a full-service hotel in the upscale and upper upscale segment, with a goal to reach 100 Gateway hotels by 2030. The company’s continued growth and expansion strategies have resulted in it registering its ninth consecutive quarter of record performance, with enterprise revenue surpassing $360 million, a 7% increase from the previous year.
In addition to hotels, IHCL is expanding into the branded residences market with the first Taj-branded residences set to open in Chennai. This move allows IHCL to diversify its revenue streams and leverage the strong brand equity of Taj in a lucrative market segment in India worth over $2.6 billion. The company’s entry into branded residences reflects its commitment to diversification and growth, allowing it to cater to different segments of travelers and capitalize on market opportunities.
The Indian hotel company’s airport properties have proven to be a strong value proposition, with properties like the Ginger Mumbai Airport Hotel performing exceptionally well. The expansion into airport properties aligns with the growing demand for convenient accommodations close to major airports, especially among business travelers. IHCL’s focus on airport properties is reflected in its plans for locations such as Cochin Airport, Mumbai Airport, and others, as it seeks to capture a larger share of the high-traffic airport market.
IHCL’s investment in Zarrenstar Hospitality and the upcoming Taj hotel near Cochin International Airport highlights its commitment to expanding its airport hotel portfolio. The company’s focus on strategic acquisitions, diversification, and growth strategies has been paying off, as evidenced by its consistent record performance and revenue growth. By capitalizing on market opportunities, IHCL is positioning itself as a key player in the Indian hospitality industry, with a growing portfolio of hotels, residences, and a strong market presence in prominent gateway destinations like Bhutan. As the company continues to expand and innovate, its future growth prospects look promising.
