Tata Group’s Ginger Hotels Could Be Heading For An IPO
- ByAyushi Ray | July 21, 2021
Tata Group’s Ginger Hotels could be heading for an IPO, Roots Corporation Ltd. (RCL), which runs the Ginger properties, is 67 percent owned by IHCL. Ginger is one of the single-largest hotel brands in India. Tata Opportunities Fund, a third-party private equity fund, could be looking at exiting RCL, a senior IHCL executive said. “Tata Opportunities Fund has been a partner for us for 10 years and there are discussions around the timing of exit for them. There are really two options before us,” Giridhar Sanjeevi, Executive Vice President and CFO, IHCL, told analysts at a recently held IHCL Investor Day function. “One option is that given the potential for Ginger, in terms of taking it up to 10,000 rooms and 100 hotels, it could very well be a potential company for an IPO in 3-4 years,” Sanjeevi added.
IHCL’s Ginger portfolio comprises 78 hotels across 50 cities, including 24 properties under development. Although Ginger is an entry-segment hotel brand, it recently underwent a massive repositioning exercise to place it as ‘Lean Luxe’ as against ‘Smart Basics’ that it started out as. This is not the first time that IPO plans are being formulated for Ginger. In 2012, the then Tata Group chairman Ratan Tata had evinced interest in listing Ginger at the annual general meeting of IHCL. While Ginger has been making losses, for IHCL, it has one of the best occupancy levels across the group. IHCL has three other hotel brands — Taj, Vivanta and SeleQtions. Since the end of 2018, RCL has added 33 properties at an average of more than one property every month.
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