IHCL is bringing back its Gateway brand from “cold storage” in India, reimagined as a full-service hotel offering in the upscale segment. The rollout will commence with 15 hotels in Bekal and Nashik this quarter, with plans to scale to 100 hotels by 2030. This decision follows the successful repositioning of the midscale brand, Ginger, in 2018 and 2019. The Gateway brand had previously been phased out in favor of the more upscale Vivanta brand, but IHCL now sees opportunities for growth in Tier 2 and Tier 3 cities with a more regionally-focused offering.
The decision to bring back the Gateway brand stems from strategic considerations and market dynamics. Taj had traditionally been positioned as a luxury brand, but this positioning was diluted over time with the addition of Vivanta and Gateway properties. Recognizing the potential in Tier 2 and Tier 3 cities for a more affordable and locally-aligned brand, IHCL aims to differentiate the new Gateway brand by reflecting the unique characteristics and ethos of each city it enters. This localized approach is intended to resonate more deeply with guests in these locations.
With over 110 Taj properties and nearly 100 Ginger properties, IHCL has already achieved a critical mass in its portfolio. Introducing the new Gateway brand allows the group to further diversify its presence and appeal to a broader range of guests. Positioned as an upscale full-service offering, Gateway fills a niche between luxury Taj properties and budget-oriented Ginger properties. IHCL is confident in quickly reaching a critical mass of 50 hotels in operation, starting with 15 hotels in the initial launch.
IHCL reported its best-ever fourth quarter and full year financial performance for the quarter ending March 31, 2024, marking the eighth consecutive quarter of best-ever performance. Consolidated revenue grew 17% year-on-year to INR 69.5 billion ($834 million), with EBITDA growing 20% year-on-year to INR 23.4 billion ($280 million). As of March 31, IHCL has a portfolio of 310 hotels, including 19 in the pipeline, with plans to open 25 hotels in fiscal 2025. This strong performance supports the introduction of the reimagined Gateway brand as a key growth strategy.
By bringing back the Gateway brand, IHCL aims to capture growth opportunities in emerging markets in metros and Tier 2 and Tier 3 cities in India. With a focus on offering a tailored and more affordable experience aligned with local market dynamics, the new Gateway brand is strategically positioned to complement the luxury Taj properties and budget-friendly Ginger properties already in the IHCL portfolio. The localized approach of the brand aims to differentiate it from generic mass-market offerings and resonate more deeply with guests in each location it enters.
In conclusion, IHCL’s reintroduction of the Gateway brand reflects a strategic decision to capitalize on growth opportunities in Tier 2 and Tier 3 cities in India by offering a more affordable, regionally-focused full-service hotel experience. This move follows the successful repositioning of the Ginger brand and aligns with IHCL’s overall strategy to diversify its presence in the market and appeal to a broader range of guests. With strong financial performance and a growing portfolio of properties, IHCL is well-positioned to launch the reimagined Gateway brand and achieve its goal of quickly reaching a critical mass of hotels in operation while continuing to expand its presence in the Indian hospitality market.
