Ultimate Luxury in Budget: IHCL unveils world's 1st Taj branded Homes in Chennai

The Indian Hotels Company Ltd has recently revealed its plans to introduce the first-ever residential properties under the prestigious Taj brand. The Taj Sky View Hotel & Residences, which is currently being constructed in Chennai, will witness a collaboration between IHCL and the Ampa Group, a renowned real estate developer based in the city. This partnership aims to unveil a total of 253 hotel rooms and 123 branded apartments. The project is anticipated to reach completion in early 2027, specifically between the months of January and March.

Puneet Chhatwal, MD and CEO, at IHCL, mentioned,"We believe IHCL can have a strong presence in the business of business residences, and that we have the ability to come up with a sustainable, profitable and growth-oriented model to serve all customer points."

As per the collaboration between Ampa Group and IHCL, the developer will finance the project while IHCL will oversee the operations of the entire property for a duration of 30 years, which includes the upkeep of the 123 residences on the premises. The estimated construction cost of the project amounts to ₹800 crore, with Ampa having already contributed ₹200 crore towards it.

Ampa Palaniappan, Chairman and MD of the Ampa Group, told,"Ampa's land bank is a family heirloom, and I believe the project will be a win-win for IHCL and us. The sale of residences will fund the operations of the hotel in what will become a cash-flow-neutral project."

He further added, "The idea is to have a debt-free hotel, which is apt for a debt-free company like IHCL."

Palaniappan explained,that as per the Ampa Group, the starting price for homes at Taj Sky View is Rs.6.5 crore for a unit size of approximately 2,500 square feet. The largest unit available will be around 5,900 square feet and could cost more than Rs.19 crore.

Palaniappan also quoted,"We expect the hotel to be completed and operational first, after which the residences will be completed."

Chhatwal said,"We are not in a hurry to sign more branded luxury residences in other cities. We will ink other agreements and finalize more projects as this one comes up. Spirituality in business as well as personal life is a massive opportunity to be tapped. The investment that has gone into Ayodhya and the Kashi Vishwanath Temple in Varanasi, will attract more visitors."

IHCL anticipates a double-digit growth rate in RevPAR for properties situated in holy cities due to the launch pipeline of inventories in tier-2 and tier-3 cities. 

According to Chhatwal, RevPar in spiritual cities has been steadily increasing, with a few exceptions such as heat waves or geo-political situations. Despite these challenges, Chhatwal remains optimistic that RevPar in these cities will keep moving upwards.

He told that he expects a double digit growth in overall RevPAR for some time before high single-digits on account of inflation.

The IHCL CEO mentioned a potential increase in ADR in metro cities due to the focus on tier-2 towns, allowing hoteliers to raise prices at city properties.