Skift Take
The latest acquisition by India’s largest hotel group suggests that “experiential leisure” is becoming popular. “Experiential leisure” means “hotels with small room counts and home-like architecture, so vacationers can pretend they’re not at hotels.”
India’s largest hospitality company, Indian Hotels Company (IHCL), is expanding its “experiential leisure” segment by acquiring a majority stake in the operating company behind Tree of Life Resorts and Hotels, the firm said Tuesday.
Tata-backed IHCL will take a 55% stake in Tree of Life, deepening its partnership with Ambuja Neotia, a real-estate developer and operator in Kolkata, which owns the remaining share.
IHCL said the all-cash deal’s price has not been fully finalized but will be no more than 18 crore rupees, or a little over $2.1 million. The deal is set to close early next year.
Boutique Trend: While Tree of Life has only 19 resorts and hotels, IHCL plans to help expand the portfolio to 100 properties by 2030. The move underscores the growing popularity of “experiential leisure” as a hospitality trend.
Tree of Life properties typically only have 10 to 20 rooms each. Demand for smaller properties has picked up. As Skift noted last year, hotel groups have been inventing brands that feature smaller properties in India, such as Ama Stays and Trails by Indian Hotels Company, Storii by ITC Hotels, and Radisson Individuals Retreats.
The deal comes as luxury travelers increasingly seek authentic, off-the-beaten-path experiences. Tree of Life specializes in boutique properties in 15 locations like Dared, Varanasi, and Kumaon.
The backstory: A year ago, Ambuja Neotia bought Tree of Life’s operating company, Rajscape Hotels, for an undisclosed price. Since March, IHCL has been marketing the hotels to its customers via a partnership with Ambuja Neotia, which also operates seven properties under IHCL brands.
IHCL has been on a growth spree. It grew its portfolio at a double-digit percentage rate last fiscal year and now has over 350 properties.
Last year, Skift profiled the founder of Tree of Life, Himmat Anand, who had led the Tree of Life for about 15 years. After buying the company, Ambuja Neotia named Vinoth Ram the new CEO. See Skift’s story: How India’s Tree of Life Is Creating a Place for Itself in the Hospitality Sun.
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