Tata Group-promoted hospitality major Indian Hotels Company Ltd (IHCL) has entered the homestay segment with the brand Ama Trails and Stays wherein it will enter into management contract with nine heritage bungalows with Tata Coffee in Coorg and Chikmagalur. It plans to add two of its own bungalows in Goa by mid-next year under the AMA umbrella.
The move into the homestay segment comes at a time when global players such as Airbnb and several start-ups such as SaffronStays are already expanding their presence in the segment.
According to experts, while the homestay segment is still at a nascent stage, India is being favoured as a top destination for homestay as tourists experience local flavours and culture at affordable rates.
Puneet Chhatwal, Managing Director and CEO of IHCL, said: “With India’s rich diversity, we are confident that we will be able to scale this product (homestays) to the first 100 units before the end of 2020 and bring distinctive offerings for our guests across the Indian sub-continent.”
He further added that the demand growth is outpacing supply in the Indian hospitality sector at present in both luxury and upscale properties.
Expansion plans
Commenting further on its expansion plans, Chhatwal said that the $1 billion group is planning to open one hotel every month in the next year across its brands — Taj, Vivanta and Ginger. The hotels will come up both in the domestic and international market.
He further added that the company is looking to raise some capital by selling some unused assets. In the last three fiscals, it had generated ₹2,800 crore through sale of some assets.