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Kolkata-based real estate company Ambuja Neotia Group recently forayed into North India with the acquisition of Tree of Life, a boutique resort chain. The group has been known for developing luxury hotels in partnership with Indian Hotels Company Ltd in East India. The acquisition brings 14 resort properties into its fold. Going forward, the group will strengthen its presence in North India and focus on boutique experiential properties, Group Chairman Harshavardhan Neotia, told businessline. Excerpts:
Is the Tree of Life acquisition the first brownfield acquisition by the Ambuja Neotia Group? Is the group looking for more such brownfield acquisitions
Tree of Life Resorts is the first brownfield acquisition by the group in the hospitality space. With this acquisition, our hospitality vertical gets footprint in 5 States — Rajasthan, Uttar Pradesh, Himachal Pradesh, Uttarakhand, and Gujarat. The group is open to exploring opportunities for leisure hotels at important destinations if they make a strategic fit.
Will the Ambuja Neotia Group manage Tree of Life resort properties? Again, will it be the first time that group will be managing hotels, and how is the group preparing for that?
The Tree of Life properties have been acquired as going concerns, with the entire management team continuing except for the previous owners. We have appointed Vinoth Ram as the CEO. Vinoth comes with a rich experience of over 20 years in the hospitality industry. Further, the group has been successfully managing a portfolio of five hotel properties for many years now, in addition to several clubs and restaurants. One of these recently moved to Taj. The group hospitality team is extending a supporting hand.
The group is, so far, largely restricted to East and North East India. With Tree of Life acquisition it gets ownership of resorts in North India. Is the group looking to spread wings beyond East and North East India?
Our focus in the past has been in the East and North-East India. After gaining experience in the hospitality industry, it was a logical next step to expand our boundary of operations. After acquisition of Tree of Life, we get a foothold in the North India. Our priority is to strengthen the presence in North India. We shall gradually look at expanding our presence in other places of high tourism potential.
Tree of Life’s total room inventory across its 14 hotels is around 200, and thus is much smaller compared to IHCL-managed hotels owned by the group. What will be group’s strategy with Tree of Life?
With Tree of Life acquisition, the group has entered the boutique experiential hospitality space, with 14 properties spread over five States with average Inventory of around 15-20 keys. The group gets a launch pad for faster expansion on an asset light model by on boarding properties on long-term lease or management contract. We would look at fast expansion into this space.
The Ambuja Neotia group has a long partnership with IHCL, which manages seven of its properties. Is the group exploring partnership with other Indian and foreign brands too for hotel development.
We have developed a great partnership with IHCL group over the years. However, if a particular brand will seemingly do more justice to any specific asset, we would consider the same at an appropriate point in time.
How is the partnership with Postcard Hotel shaping up. Three properties were planned in East and North East India. What’s the status?
We are in discussion to develop the design on one property.
The hospitality sector has seen a boom time with increase in average daily rates and RevPar this year due to big ticket events. This momentum may not continue in 2024 and revenue growth could slow down. How do you see 2024 pan out.
Our entire focus is on experiential luxury space – large format under the Taj brand and boutique properties under recently acquired Tree of Life brand. India’s growth story will continue to attract large investments and big-ticket events. We are confident of multi-year secular growth in demand for the industry.
What will be your investment strategy in 2024. What main challenges do you see in hotel development.
Over last three months, we have opened 2 new hotels, 69 keys Taj Guras Kutir at Gangtok and 73 keys Taj Taal Kutir at Kolkata. We are slated to open the 126 keys Taj Patna in Q1 of 2024. We are in discussion for acquisition of land at a few tourist attractions. We believe design and aesthetic experience is one of the most important touch point for consumers. The key challenge is to keep creating products that offer differentiated and superior aesthetic experience to the guests
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