How Indian Hotel Co.’s alliance with Tree of Life could grow

Earlier this month, Mumbai-based Indian Hotel Co. Ltd. (IHCL) announced a strategic alliance with Tree of Life Resorts & Hotels that expands its brand portfolio and could expand as both companies get bigger.

Tree of Life, which was launched in 2009 and operates 14 boutique hotels and resorts in India, was acquired last October by the Kolkata, India-based Ambuja Neotia Group, who owns more than 750 rooms (with another 200 in its pipeline) already managed by IHCL.

Harshavardhan Neotia, chairman of Ambuja Neotia, said the target is to open 100 properties by 2030 under the Tree of Life umbrella. 

Initially, IHCL said it will help the chain with sales, marketing, distribution, training, loyalty and branding support, but the partnership could expand. The Tree of Life Resorts & Hotels will be available for booking on IHCL’s network starting March 1.

Last week, Hotel Investment Today talked to IHCL CEO Puneet Chhatwal about its fast growth, why everyone is coming to India and how IHCL’s ‘crown jewel’ drives its business.

IHCL CEO Puneet Chhatwal

We asked Chhatwal about the timing of the Tree of Life partnership and how it could evolve. 

He said it came about because of their already strong partnership. IHCL has done other strategic partnerships, but usually as part of a joint venture.

“It’s a very important, interesting and very strong partnership,” Chhatwal said. “And here [with this partnership] we have no joint venture. We only have pure fee-based business with the owner.” 

But Chhatwal thinks the partnership will evolve as Tree of Life grows. 

“When the brand develops critical mass, I think we will take over the management in one way or the other or the team will collaborate,” he said. “It will not stay as a purely distributional [partnership].”

Chhatwal said IHCL’s fast growth has happened because of how India has changed. “As India started growing into Tier 2 and Tier 3 cities and people started traveling more as a need than as a discretion, there was an opportunity to grow the midscale and the upscale segments, and that’s what we did. We started riding that wave,” he said.

That demand is so great that Chhatwal said IHCL will launch another upscale full-service brand in the coming months. He said they are still working out the details of the brand name.