India’s tourism and hospitality sector has been booming like never before. India, the land of several mysteries has always been a favourite among leisure travellers. With the relaxed tourist visa norms and the strategic push to turn India into a country that means business, the country has been attracting both holiday as well as business travellers. The sector has also been witnessing a growth in domestic demand due to increasing purchasing power of the country’s citizens and because of their approach towards vacationing is coming of age. The top hotels in India include EIH Limited (Oberoi), Indian Hotels Company (Taj), Mahindra Holidays, ITC Hotels, Ashoka Hotels, EIH Associated Hotels Limited, Speciality Restaurants, Mac Charles, Asian Hotels (East) & Taj GVK Hotels. Here is the list of the top 10 hotels in India 2016.
10. Taj GVK Hotels
Taj GVK Hotels and Resorts (TAJGVK) is a joint venture strategically leveraging on the competitive advantages of two multi-million dollar firms with their expertise in the luxury and hospitality sectors.
Image: company website
It is an alliance between the Hyderabad based conglomerate GVK Group and the TATA owned Indian Hotels Company Limited (IHCL). The joint venture came into existence in 1999 – 2000, and currently services its customers by owning and managing five star hotels in prime locations in India. It operates five star hotels in Hyderabad (four in number), and one each in Chandigarh and Chennai. With Taj Krishna, Taj Banjara, Taj Deccan, Vivanta by Taj in Hyderabad, and Taj Chandigardh in Chandigarh, and Taj Club House in Chennai, TAJGVK has a total room base of over 1080 across its six properties. Another of TAJGVK’s 5-star deluxe property is coming up near Mumbai’s Santacruz Airport near Terminal 1C in collaboration with Greenridge Hotels and Resorts, and with its construction set to complete, will soon start its operations. Set in prime locations in the city, each of the six properties are epitomes of remarkable architecture, with a view to blend the historical past of the city with its modernization, and luxury with business. The hotels offer a wide variety of rooms, suited for both leisure travellers as well as for business purposes. The Taj Krishna in fact is a proud member of The Leading Hotels of the World. TAJGVK also illustrates exemplary corporate governance and is particular about code of conduct and corporate policies.
TAJGVK is listed on both the BSE and NSE stock exchanges in India and is one of the companies with a high market capitalization in the hotels sector.
Market Cap (Rs. cr): 865
Net Sales (Rs. cr): 272
Net Profit (Rs. cr): 8.42
9. Asian Hotels (East)
Asian Hotels (East) is a company operating in the hospitality sector and it is a leading hotel company.
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It has been through stages of merging and de-merging, and private to public holding, before its current form and name came into existence. Previously known as Vardhman Hotels Private Limited, and incorporated under the same name, this hotel company came into being on January 8, 2007. The same year it was converted to a Public Limited Company, and starting 28th July 2007, the company began to be known by the name Vardhman Hotels Limited. With Asian Hotels Limited as the Transferor Company, and Chillwinds Hotels Limited and Vardhman Hotels Limited as the Transferee Companies, the then company entered into a Scheme of Arrangement and De-merger. The resultant company after completing the due legalities and formalities associated with transfer, vesting, demerger, and retention of the hotel’s liabilities and assets began to be known as Asian Hotels (East) Limited. This final change of name came about on February 11th 2010. Among its prized possessions are the hotels Hyatt Regency in Chennai and Kolkata. The hotel chain functions under the able and professional guidance of its key people – notably Mr.Radhe Shyam Saraf heading as the Chairman and Mr.Umesh Saraf and Mr. Arun Kumar Saraf as the Joint Managing Directors. As reflected by online surveys, Asian Hotels (East) has been showing an upward trend with respect to customer satisfaction, which has been achieved by the apt combination of leadership, vision and focus on customer engagement. With its intensive marketing and branding efforts showing fruitful results, the company has also shown a positive trend with respect to the business it h been attracting in the last couple of years.
It is listed on both the BSE and NSE stock exchanges of India. The number of its outstanding shares now stand at 11,440,585 as of March 31st 2016.
Market Cap (Rs. cr): 246
Net Sales (Rs. cr): 98
Net Profit (Rs. cr): 8.19
8. Mac Charles (Le Meridien)
Mac Charles (India) Ltd. is a hospitality company that was founded on September 28 in the year 1979 and has its headquarters in Bangalore (now called Bengaluru).
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Owning and operating hotels, it also provides banquet hall and travel services besides accommodation at its units, and the key hotel property to Mac Charles’ (India) name is the Le Meridien Hotel in Bangalore. Situated amidst the lush green of the garden city that Bangalore is, Le Meridien is indeed a remarkable example of luxury meets culture. Given that the hotel is situated close to both the commercial and business areas, it becomes the top choice for the leisure traveller as well as the business traveller. The Certificate of Excellence by the American Travel website TripAdvisor is a testimony to the grandeur and outstanding customer experience of the hotel Le Meridien. Under the strong leadership of Mr. C B Pardhanani, who is the Chairman, Mr. P B Appiah, Mr. Suresh Vaswani, Mr. M R B Punja, and Ms. Tanya Girdhar John, who each work in the capacity of Directors, Mac Charles (India) has secured for itself a comfortable position when it comes to the key performance indicators such as market capitalization, total revenues and net profits. It has been doing considerably well compared to its peers and has a positive outlook towards the future. In fact, in the last quarter that ended on March 31st 2016, the company reported sales (consolidated) of INR 32.27 cr, which is a staggering increment of nearly 50% on its sales numbers for the last quarter.
Mac Charles (India) is listed only on the BSE stock exchange. The number of its outstanding shares as of 31st March 2016 is 13,101,052.
Market Cap (Rs. cr): 532
Net Sales (Rs. cr): 88
Net Profit (Rs. cr): 32
7. Speciality Restaurants
Speciality Restaurants Limited is a restaurant company in India which is a leader in the hospitality industry.
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It was founded in 1992 in Mumbai by its founder Anjan Chatterjee, who currently works in the capacity of the Managing Director of the company, and while its head office is in the city of its founding Mumbai itself, it is registered in Kolkata. The company not only owns and operates its chain of multiple fine and casual dining restaurants in twenty five cities across the three countries (India, Tanzania and Bangladesh), it has also diversified its business by owning and managing confectionery stores. The company’s tryst with the hotel and restaurant business started when its founder Anjan Chatterjee launched its first restaurant “Only Fish” in Mumbai back in 1992. Riding on the success of its maiden venture, the company went to launch two more brands by the names "Oh! Calcutta" and "Mainland China". These two new brands were also launched first in Mumbai in the year 1994. The reason that the brands went on to create ripples was that even though the country was beginning to witness a higher purchasing power, the market potential for authentic and tasty fine dining experience was untapped. While moving from the conventional over-crowded dining experiences to fine dining was a bold one, in the end it was what did the trick.
Specialty Restaurants has not only managed to please the Indian taste buds, it has also managed to attract investors through its IPO in 2012. With listings in both BSE and NSE stock exchanges, the company became the first fine dining restaurant in the stand-alone category to become a publically listed company. While rave reviews from their satisfied customers should alone be enough, they also have several awards to add to their credit – most awarded cuisine, Sweet Bengal among others. They soon plan to go more global than ever before.
Market Cap (Rs. cr): 439
Net Sales (Rs. cr): 321
Net Profit (Rs. cr): 0.26
6. EIH Associated Hotels Limited
Initially incorporated under the name Pleasant Hotels Limited, the company came into existence on 21st March 1983.
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The company went through two more rounds of name changes, first being referred to as Oberoi Associated Hotels Limited in 1989, and then eventually being renamed to EIH Associated Hotels Limited, with this name being legally adopted on November 1st 1996. EIH Associated Hotels Limited is a major holding company of The Oberoi Group, which is one of the most prominent Groups active in the hospitality business in India. Rai Bahadur Mohan Singh Oberoi is credited to be the founder chairman of the company. EIH Associated Hotels Limited owns, manages and operates five star hotels in prime tourist locations in India. These include The Oberoi Rajvilas in Jaipur, The Oberoi Cecil in Shimla, and the hotels operating under the brand name Trident at Agra, Bhubaneshwar, Cochin, Chennai, Jaipur and Udaipur. The able management of the company includes the likes of Ms.Indrani Ray, Mr.Akshay Raheja, Mr.P R S Oberoi, Mr.Rajesh Kapadia, Mr. SS Mukherjee and Mr.Vikram Oberoi. While the Oberoi Group or its associated companies need no certification, the hotels managed by the EIH Associated Hotels Limited have bagged several awards in the past – notably “India’s leading resort”, “Top 15 resorts in India”, “Best Hotels in India” by World Travel awards, World’s Best Awards and Conde Nast Traveler, USA, respectively.
Listed on both the BSE and NSE stock exchange in India, EIH Associated Hotels Limited has 30,468,147 outstanding shares (as of 31st December, 2015). The abbreviation EIH actually stands for East India Hotels. The company follows the corporate governance model called as “The Oberoi Dharma” and stays committed to its mission of not just meeting but in fact exceeding the expectation of its guests, and of creating extraordinary value for all its stakeholders.
Market Cap (Rs. cr): 1069
Net Sales (Rs. cr): 249
Net Profit (Rs. cr): 38.37
5. ITDC – Ashoka Hotels
The only PSU (Public Sector Undertaking – owned by the Union or State/Territory governments of India) to feature on this list is The India Tourism Development Corporation Limited (ITDC).
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Headquartered in New Delhi, ITDC has business ventures not only in hospitality sector, but also in retail and education sectors. Founded in October 1966, ITDC is owned by the Government of India and falls under the Ministry of Tourism, and the key services provided by ITDC include transportation facilities, restaurants and hotels. At several places, tourists can also avail of duty free shopping and other entertainment sources. Besides this, ITDC also partakes in producing, distributing and selling publicity literature for tourists. Of the over 17 properties that ITDC owns, several of them are under the Ashok Group of Hotels (Jammu, Delhi, Jaipur, Patna, Itanagar, Puducherry, Bhopal, Ranchi, Bhubaneshwar, Guwahati), some under the Samrat and Janpath brand names (eg: Delhi) and some under strategic joint ventures. They also own and operate transportation units, duty free shops at both airports and seaports, and sound and light shows. On the behalf of Department of Tourism, ITDC also manages a restaurant at Kosi and the Bharatpur Ashok Hotel. Being a PSU, it also offers packages for serving Government employees, veterans, students and the differently-abled. At the 7th Dalal Street Investment Journal Annual Awards (2015), ITDC bagged the ‘Fastest growing Miniratna Award’ which testifies its commitment to customer service and business growth. ITDC’s Commercial and Marketing Director Dr. Piyush Tiwari was also felicitated with Best Professional in Business Development award at the PATWA International award 2016 for the Tourism industry, which further fortifies its business approach. The other key people ITDC Includes are Mr. Umang Narula (IAS) who functions in the capacity of its Chairman and Managing Director. ITDC is listed only on the BSE.
Market Cap (Rs. cr): 1914
Net Sales (Rs. cr): 435
Net Profit (Rs. cr): 22.55
4. ITC Hotels
ITC Limited) is a business conglomerate that is known for its presence in nearly every business sector and its dedication to responsible and sustainable business practices, ITC has carved a niche for itself.
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A prime example of that and furthering its’ triple bottom line philosophy is its hotel chain ITC Hotels, which is touted as the Greenest Luxury Hotel Chain in the World. Founded in 1975, ITC Hotels started its operations with Hotel Chola in Chennai, and with over 100 properties to its name, ITC Hotels are now the second largest hotel chain in India. They also boast of the most extensive art collection in the country, housing works by over 50 artists, the likes of M F Hussein and Tyeb Mehta. Justifying its tagline of “Responsible Luxury”, ITC Hotels became the first of its kind to have all its luxury hotels certified with the LEED Platinum by the US Green Building Council– attesting its dedication to energy and environmental design. The Hotel chain achieves this feat by being energy efficient – 55% of its energy needs are met through renewable sources, water efficient – reduction of water usage, and recycling waste water, and with waste reduction – reducing and recycling solid waste to reduce its carbon footprint.
To be able to service and cater to a wider audience, the hotel chain functions under four separate brands (ITC Hotels – Luxury Collection, Sheraton, Fortune and WelcomHeritage). With the unique ‘Namaste’ logo symbolizing its dedication to hospitality and service, ITC Hotels has indeed redefined the concept of luxury and comfort, and has established India and itself as a benchmark in the hospitality sector globally. The hotel chain also its own line of ready to eat food products called Kitchens of India, available in India, US, Canada and Germany.
Market Cap (rs. Cr): 2206
Net Sales (Rs. Cr): 1286.17
Net Profit (Rs. Cr): 52
3. Mahindra Holidays and Resorts India
Mahindra Holidays & Resorts India Limited (MHRIL) is one of the leading companies in the leisure hospitality industry.
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The company is in the business of providing holiday facilities and selling vacation ownership and the brands Club Mahindra Holidays, Zest and Club Mahindra Fundays are also associated with it. MHRIL is a part of the Mahindra Group which is known for its extensive brand diversification and its reliable brand image. Mahindra Group started MHRIL in 1996 and the company has now completed 20 years of operations in 2016, emerging as India’s successful holiday company in the organized vacation ownership market. Although starting off with just one resort to its name (which is in Munnar, Kerala), by 2006 MHRIL had forayed into new territories like Maharashtra, Rajasthan and Uttaranchal. In fact, they currently operate a total of 46 resorts in India as well as overseas locations. Not one to rest on its laurels, MHRIL is rumoured to be planning and working towards establishing its resorts all over the world. MHRIL is also an affiliate of the prestigious Resorts Condominium International (RCI) group.
The company’s positioning strategy revolved on the statement “A Holiday you Own”, making themselves flexible and exclusive for each and every Mahindra Holiday member. They came up with the idea of dividing a year into colour coded seasons through which every customer could match it with his or her holiday pattern. This helped them gained the trust of the consumers and made the latter feel special by having “Something for everyone”. The company provides holiday entitlements to its members via its vacation ownership products over the life of the product and boasts of over 170000 satisfied members in India and abroad. MHRIL is listed on both BSE and NSE.
Market Cap (Rs. cr): 3703
Net Sales (Rs. cr): 951
Net Profit (Rs. cr): 117.35
2. IHCL (Taj Hotels)
The only company to feature on this list that has been into the hospitality business for over a century, The Indian Hotels Company Limited (IHCL) is a company that needs no introduction.
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Along with its subsidiaries, IHCL is better known as The Taj Group, and its parent company, the TATA Group is a name Indians and the world alike respect and trust. Incorporated as long back as 1903 by Jamsetji Tata, the founder of the Tata Group, IHCL has its headquarters in Mumbai, where it all started from with its very first property the Taj Mahal Palace. It has now grown to 100 hotels at 62 strategically chosen locations in India that serve not only business or leisure travellers, but also pilgrims at remote destinations. Not limited to just India, IHCL has its presence felt in international locations as well, owning and operating 13 hotels in the UK, USA, sub-continent and beyond (Bhutan, Sri Lanka, the Maldives, Malaysia), Africa (Zambia and South Africa) and the Middle East. IHCL recently also announced that it will soon be focussing on South-East Asia and Gulf Co-operation Council (GCC) countries as well. In an attempt to maximize revenues, IHCL has also been making strategic divestment decisions (such as selling off Taj Boston, USA and a property in Morocco), but at the same time has also decided to increase close to a thousand rooms in its properties across the other luxury brands owned by it, namely Vivanta, Gateway and Taj Luxury. Travel website TripAdvisor recently named IHCL’s Umaid Bhawan Palace at Jodhpur as the Best Hotel in the world, which bears testimony to the company’s dedication and commitment to hospitality and customer service. IHCL also imparts skill-based training to the underprivileged youth to help them land jobs in the hospitality sector. The company is listed on both BSE and NSE.
Market Cap (Rs. cr): 13097
Net Sales (Rs. cr): 2273
Net Profit (Rs. cr): 201.04
1. EIH Limited (Oberoi Hotels)
EIH Limited, a member of The Oberoi Group, is a publically listed company in the hospitality sector that was incorporated in the year 1949.
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EIH Limited’s operations are extended to 5 countries, and the properties that it manages fall either under the Trident brand, which are five star hotels, or under the Oberoi brand, which are luxury hotels. Oberoi Hotels and resorts are famous all over the world for their luxury and service quotient, and have consistently bagged awards and recognition as a testament to that. In India, the Oberoi Hotels are present in all corners of the country, be it North (Delhi, Gurgaon, Jaipur, Udaipur, Agra), West (Mumbai, Ranthambhore), East (Kolkata) or South (Bangalore). Its presence can be felt in the Himalayas (Shimla) and even in the Kerala backwaters on the Oberoi Motor Vessel Vrinda. Overseas, the hotels are present in Asia (Bali and Lombok in Indonesia, and in Mauritius) and the Middle East (Dubai, Saudi Arabia and Egypt). To leverage and build on its hotel network, EIH Limited has properties coming up in UAE, Morocco and Chandigarh. Under the five star brand Trident, EIH Limited has properties in Agra, Gurgaon, Jaipur, Udaipur, Mumbai, Cochin, Chennai and Bhubaneshwar. Other than Trident and Oberoi, the company also operates the heritage Madiens Hotel in Delhi, which was built in 1903. To ensure world class service and luxury, the company recently closed down one of its oldest hotels The Oberoi Delhi for renovation purposes for the next two years. While Mr. P R S Oberoi heads the company as the Executive Chairman, Mr. S S Mukherji function in the capacity of Vice Chairman. It is notable that the conglomerate ITC and Mukesh Ambani’s Reliance Investment arm hold 14.99 and 18.54 percent stake in EIH Limited respectively. The company is listed on both BSE and NSE.
Market Cap (Rs. cr): 6495
Net Sales (Rs. cr): 1416
Net Profit (Rs. cr): 101.48
Ranking Methodology:
The leading hotel chains and brands are considered and are ranked on the basis of their market cap, net sales and net profits.