Hotel Chains and Ginger

Topics: Hotel chains, Hotel, Hotels Pages: 23 (6907 words) Published: August 2, 2012
Emerging Markets Case Studies Collection
þÿEmerald Case Study: Ginger - Smart Basics!" Mukta Kamplikar

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Ginger – Smart Basicse
Mukta Kamplikar

Mukta Kamplikar is a Senior Practice Consultant at Tata Management Training Centre, Pune, India.

Company background
Roots Corporation Limited (RCL) is a wholly-owned subsidiary of The Indian Hotels Company Limited (IHCL). IHCL is a part of the Tata Group of companies, India’s premier business house. Taj Hotels Resorts and Palaces comprises 57 hotels in 40 locations across India with an additional 18 international hotels in the Maldives, Mauritius, Malaysia, Australia, the UK, the USA, Bhutan, Sri Lanka, Africa, and the Middle East. Incorporated on December 24, 2003, RCL operates the first-of-its-kind category of Smart Basicse hotels across India. Launched in June 2004, the Smart Basicse concept created a revolution in the world of Indian hospitality. RCL develops and operates a fast-expanding chain of economy hotels across India under the ‘‘Ginger’’ brand. The company either owns/leases land on which it develops and operates hotels and has now started entering into joint developments where the owner brings in the land and bare shell and leases the same to the company. The company’s recent growth has been organic, through developing and operating hotels in new cities or by going for additional hotels in existing markets, thus expanding the geographic reach of the hotel chain. The company intends to develop and operate additional hotels under both business models to maintain or achieve a dominant position in every market covered by their Ginger hotel chain. Going forward, the company is evaluating management contracts as a means of accelerating the growth.

Emergence and expansion of economy hotel chains in India
The outlook for the future of the Indian economy appears buoyant. India’s economic boom is expected to continue, albeit at a slightly slower pace. According to some agencies, real GDP growth (on an expenditure basis) is forecast to slow from 9.4 percent in fiscal year 2006/2007 to an...
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