Not long ago, the group had announced its exit from two Gateway properties in Jodhpur and Ahmedabad when the contract expires in May 2016.
Indian Hotels Company Ltd (IHCL), which operates hotels and resorts under Taj brand, is now scouting small and mid-sized cities to open properties under its mid-market brand 'The Gateway'.
Not long ago, the group had announced its exit from two Gateway properties in Jodhpur and Ahmedabad when the contract expires in May 2016.
On the opening of its second Gateway Hotel in Hinjewadi (Pune), Farhat Jamal, senior vice president (west India and Africa), Taj Hotels Resorts & Palaces, said, "We are planning to launch The Gateway Hotel in Ajmer on November 30, and another one in Corbett early next year."
In spite of several recent contract exits and sale of the owned property in Kolkata, the group is still bullish on expansions plans.
On constant churns faced by the group, Jamal said, "There is no churning happening in the group. This industry is in evolution. Some relationships may continue, and some may not. You continue to bring in more members in the Taj family. We are happy to nurture those relationships."
In September, the group exited the contract for managing the Taj Palace, Dubai, after running it for 14 years. Last year, they stepped out from operating Taj Palace, Marrakech in Morocco.
Among the major concerns for Taj hotels is the foray of several global players in the Indian market. Since 2010, other competitors in the segment like Starwood, Marriott and Hilton have opened hundreds of properties. Even in Hinjewadi, these brands have captured the market in a big way.
"It is a very nascent stage. We are confident and have positioned ourselves ahead of the market. We are developing our 'Gateway' brand and will continue to grow this brand not only in Pune but across India," said Jamal.
The group is reportedly going to open its own property Taj Santacruz near the domestic airport in Mumbai by January, almost after a gap of five years.
Apart from the Hinjawedi property, Taj has opened four properties during the current financial year – in Tirupati, Nashik and Dubai, of which two are under management contract and other two in association with Piem Hotels and Root Corporation.
Paranjape Schemes (Construction) owns the Gateway Hinjewadi, which is now operated by Taj hotels under an eight-year contract which can be extended. It has 150 rooms, including 6 suites. The average room rates (ARR) of the hotel for the weekdays is Rs 5,500 per night and Rs 3,500 on weekends.
So far, the Paranjape construction has spent Rs 115 in the development of the new property.
"We are happy to bring the Taj brand of hospitality to a second location in Pune. The Gateway Hotel is the full service upscale brand of the Group," said Jamal during launch in Hinjewadi.
With this, now the group has 28 properties under The Gateway Hotel brand, including one in Colombo in Sri Lanka.
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