Tata Group’s Indian Hotels Company Limited (IHCL), operator of Taj, Vivanta, and Gateway brands, is advancing its UAE and GCC footprint with a strategic approach. IHCL is focused on expanding in markets with a strong Indian diaspora, robust airline connectivity, and status as key trade hubs under the leadership of CEO Puneet Chhatwal. Saurabh Tiwari, Area Director for Middle East and CIS hotels, emphasized that the UAE and GCC markets are primed for new Taj properties, including upscale Vivanta, midscale Gateway, and Ginger hotels. Currently, the group operates seven hotels in the Middle East, with four more under development.
Tiwari hinted at future openings in Abu Dhabi, Ras Al Khaimah, Ajman, and Sharjah, but without specific timelines. He highlighted potential properties in Abu Dhabi, including a resort in Yas Island, and additional hotels in Dubai, such as a Taj Vivanta. He also underlined opportunities in Ajman and Sharjah, noting Sharjah’s potential for sports tourism due to its cricket stadium. The UAE is currently home to three Taj hotels: the 296-room Taj Dubai in Business Bay, the 325-room Taj Exotica Resort & Spa, and the 200-room Taj JLT.
Globally, IHCL’s portfolio spans 309 hotels, including 91 under development, across four continents, 11 countries, and over 100 locations.
Regional Expansion:
IHCL is poised to enter Doha, Muscat, and Kuwait City in the GCC, with ambitious plans for Saudi Arabia. Its second Saudi property was launched in partnership with the Diriyah Gate Development Authority in 2022. Tiwari aims for five Saudi properties by Neom City’s first-phase launch, citing AlKhobar and additional Riyadh locations as priorities.
In Bahrain, IHCL recently launched two Taj hotels: a 251-room resort in Hamala and a 200-room property in Downtown Seef Manama. These projects mark IHCL as the first Indian hospitality company in Bahrain, with plans for further expansion. “The Middle East is strategically important to our growth plans,” Tiwari stated.
Scaling Strategy:
IHCL is leveraging growing airline connectivity, particularly through Air India’s expanded network, to support its expansion. Tiwari highlighted the surge in American tourism following Air India’s direct flights from cities like New York. This strategic alignment with aviation developments is key to IHCL’s growth.
Recruitment Plans:
IHCL employs 1,000 staff in the UAE, rising to 1,200 during peak winter seasons. Over the next three years, the group plans to hire up to 4,000 employees across Bahrain, Saudi Arabia, and the UAE. Each new hotel is expected to add 300–400 staff, depending on size, with larger properties potentially employing 600–800 individuals.
Hotel Rates and Occupancy Goals:
IHCL remains optimistic about maintaining last year’s 85% occupancy rate despite increasing competition. In Dubai’s Business Bay, average daily rates are around Dh900, with Taj Exotica charging Dh650–Dh1,400 and Taj JLT at Dh700. While new properties may impact the supply-demand balance, Tiwari is confident in achieving strong results in Q4-24.
Geopolitical Challenges:
Tiwari acknowledged that geopolitical tensions have restrained growth, stating, “We could have done significantly better without the ongoing conflicts. War impacts everyone, no matter the side.” Despite these challenges, Dubai’s hospitality sector has demonstrated resilience, with occupancies rebounding after initial dips caused by global events. However, IHCL noted that overall business would have been stronger in a more stable environment.
While Dubai benefits from an influx of Russian businesses, broader geopolitical instability continues to pose challenges for the sector.
