In 2024, the hospitality sector of India experienced a remarkable year. The average occupancy rate was high, prices increased, and many hotel chains switched from recovery mode to reinvention mode to take advantage of the booming tourism industry. The difficult times of Covid were a thing of the past.
Vikram Cotah, the CEO of GRT Hotels & Resorts, was enthusiastic about the growth of the southern chain, which surpassed the industry’s growth. In the first half of the year, they achieved an impressive 72% occupancy rate, compared to the industry average of 65%. Cotah mentioned that they saw strong growth in the first half of the fiscal year, even with a quieter market due to the elections in April and May. The second half is expected to be even stronger, with a projected 30% growth, driven by strong bookings and a busy wedding season.
The leisure segment of the chain is thriving, with their properties generating yields exceeding ₹10,000.
Expanding beyond their traditional markets, GRT Hotels & Resorts has ambitious plans. They aim to enter new markets in India and internationally, as well as new segments. They will be launching a homestay brand, exploring the midscale category, and focusing on spiritual tourism.
With a footprint mainly in the south, consisting of 22 hotels in Tamil Nadu, Karnataka, Kerala, Andhra Pradesh, and Telangana, the chain is now looking to expand to new locations such as the Andaman islands, Ayodhya, and Varanasi. They are also eyeing metro cities like Mumbai and Delhi to increase visibility and facilitate entry into nearby regions like Pune.
Additionally, they will be opening their first international property in the Maldives in the next 2-3 years, which Cotah believes is the ideal location for their first international venture.
To capitalize on the rising demand for weekend getaways, GRT Hotels & Resorts is exploring opportunities in Coorg, Mysuru, and Yelagiri. They are focusing more on domestic tourists post-Covid, with investments in local marketing channels and customized hotel designs suited to Indian families’ preferences.
In the coming months, they will be opening two new properties in Tamil Nadu, including a 51-room vegetarian hotel in Thirukkadaiyur and a renovated property in Kumbakonam geared towards spiritual tourism.
Embracing a multi-brand approach, GRT Hotels & Resorts has different brands catering to various segments like business travelers and leisure seekers. They are also venturing into Tier 2 and 3 cities with smaller properties to capitalize on lower costs.
The company aims to run 50 hotels by 2034, up from 25 in 2025, with a focus on doubling revenues within a decade. While the hotel industry is currently performing well, being cyclical, GRT Hotels & Resorts will need to be mindful of the market dynamics as they continue to expand.
