Amid the COVID-19 pandemic and the hospitality slump due to lockdowns and travel restrictions, ITC Hotels is optimistic about the outlook for domestic tourism and plans to increase the number of hotels under the Welcomhotel brand. ITC’s Rs 45,000 crore hospitality arm said it plans to increase the number of Welcomhotel-branded hotels from 19 to 25 in one year.
“ITC Welcomhotel will be a 25 hotel brand over the next 12 months,” said an ITC official.
The brand opened two properties within six months. The Welcomhotel Tavleen Chail opened on Thursday and the Welcomhotel Shimla about six months ago. And the Welcomhotel Ahmedabad and the Welcomhotel Port Blair were relaunched in the March quarter.
“Working with like-minded partners who deliver unique hospitality experiences has further strengthened the presence of ITC Hotels across the country,” said Nakul Anand, ITC Executive Director.
The lockdowns caused by the pandemic had hit the hospitality industry hard and not everyone was able to drive through. Hyatt Hotels Corporation has ceased operations. set Hyatt Regency Hotel in Mumbai, and said the property will be closed until further notice.
“Without funds from
(West) Ltd, the owner of the Hyatt Regency Mumbai, in order to keep the hotel open, it has been decided to temporarily suspend all operations of the Hyatt Regency Mumbai, ”the hotel announced.
With the addition of the leading mountain resort in Chail, a managed hotel of the Welcomhotel brand, the brand currently has a portfolio of around 19 hotels throughout Indiaofficials said.
ITC said its hotel business segment EBITDA was Rs 25 crore in the March quarter compared to the break-even in the previous quarter and the extreme focus on cost reduction and controllable fixed cash costs decreased by 41 percent in FY21.
Analysts speaking about the future said hotel majors are preparing for the rush as vaccination continues steadily and the economy gradually opens up, demand will skyrocket after the long doldrums. Rail reservations have already risen by 230 percent. Airlines also expect a similar surge in demand.
“The voice of the locals is becoming more and more important as people prefer to cover drivable distances after the pandemic. Therefore, domestic tourism is increasing. At ITC Hotels, we have always featured India as a destination and this remains the appropriate opportunity to meet public demand for experience, “said an ITC official.
ITC Hotels has 100 hotels of four brands in over 70 locations. BSM RG RG
