Luxury hotel chains bet big on India's wellness boom
Live Events as a Reliable and Trusted News Source Addas a Reliable and Trusted News Source Add Now! (You can now subscribe to our (You
Live Events as a Reliable and Trusted News Source Addas a Reliable and Trusted News Source Add Now! (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel New Delhi: Indian luxury hotel chains are doubling down on the wellness segment with a fresh wave of investments across India and overseas as Indian travellers increasingly spend more on the category in both home and away locations.EIH, the flagship company of The Oberoi Group, on Wednesday announced a partnership with Bhartiya Hospitality to launch 20 ‘uber luxury’ lifestyle resorts across India and some international destinations. Tata Group-backed Indian Hotels Company (IHCL) picked up a 51% stake in Sparsh Infratech that owns luxury retreat Atmantan in Mulshi near Pune last year.IHCL MD and CEO Puneet Chhatwal, who has been bullish on the segment, had said at the time of the announcement that the Rs 240 crore transaction could see IHCL expanding the Atmantan brand portfolio through new wellness centres in domestic as well as overseas markets.Ajmera Realty is expanding into Tirupati with an integrated development project in partnership with Ayyapaneni Constructions, combining luxury villas, a hospitality offering and a wellness facility. Ajmera Realty’s Tirupati project will feature an 80,000 square feet five star wellness boutique under the Maharishi Ayurveda Wellness brand. The facility will be operated by Svasta Services, a subsidiary of Belgium based Arden Parks & Corsendonk Hotels. The initiative is being spearheaded by Atul Ajmera, director, Ajmera Realty, and Ajanth Nath Reddy, MD, ACPL, and Yeldandi Ramadevi, MD, Svasta Services Pvt Ltd. Building on the Tirupati model, the partners are now evaluating similar integrated developments across Hyderabad, Gujarat, and Mumbai. Discussions are also underway with leading branded operators to manage the hospitality and wellness components of these future projects, with the objective of creating a differentiated portfolio of luxury lifestyle destinations across India.Industry insiders said wellness tourists tend to have longer stays compared to typical leisure travellers, resulting in higher gross operating profit (GOP) margins, increased expenditures on accommodations and other ancillary revenues.Taking a cue, developers and hotel operators are increasingly integrating wellness centres into luxury hospitality projects.Deepak Jain, founder of Mayfair Consultants said his company has signed mandates in South Goa, Dehradun, Kerala and Tirupati, where each development includes a wellness centre with approximately 80-100 rooms.
“For these projects, we are in discussions with domestic and international wellness brands from the UK and Austria,” he added.Noesis Hotel Advisors is also advising on wellness feasibility studies across destinations including Igatpuri, Khopoli, Alibag, Coorg and Karjat, where stable year-round climates make them particularly well suited for such developments, managing director and CEO Nandivardhan Jain said.Pioneers such as Kairali, Atmantan and Ananda have demonstrated that serious wellness is a highly viable business model, he said. "However, the sector remains underserved. Only a handful of operators truly understand therapeutic, medically led wellness. Most others continue to position wellness as a lifestyle or recreational offering, leaving a significant gap for authentic, programme led wellness destinations," he added.For IHHR Hospitality, which runs Ananda in the Himalayas, the Indian market has grown “significantly,” with domestic business increasing by 30% over the last year, chief operating officer Mahesh Natarajan said.Much of this growth is being driven by younger demographics, who are approaching wellness proactively rather than reactively and seeking integrative solutions that support longevity before concerns become acute, Natarajan said.This is also reflected in the breadth of programmes guests are seeking at Ananda, ranging from weight and stress management to hormonal health, sleep optimisation, diabetes management and a wide spectrum of other lifestyle related health concerns. "While Ananda continues to attract a highly global audience, the rise of the domestic guest is one of the most significant shifts in its recent history," said Natarajan.Abhilash K Ramesh, executive director at Kairali Ayurvedic Group that runs ayurvedic health resort and wellness centres, said the post-Covid era has made people look at authentic Ayurveda with more acceptance with many travellers viewing holidays as opportunities to improve their overall health. The company recently expanded its hospitality portfolio with the launch of Villa Raag in Goa. "This reflects our strategy of offering curated wellness experiences in high potential leisure destinations," said Ramesh. "Going forward, we are looking at expanding with two more wellness retreats, one in South India and the other in Bali," said Ramesh.
The BriefWire