In a bold strategic move poised to reshape India’s burgeoning hospitality landscape, CG Hospitality, the dynamic hospitality arm of the 140-year-old CG Corp Global conglomerate, is setting its sights on an extraordinary expansion. Under the astute leadership of Managing Director and CEO, Rahul Chaudhary, the Nepalese multinational is not just riding India’s growth wave but actively steering it. In an exclusive interview, with Hospitality Biz, Chaudhary unveiled the driving forces behind CG Hospitality’s ambitious target of 500 hotels by 2030, the transformative impact of its collaboration with global giant Marriott International, and how its deep-rooted expertise in emerging markets is now powering an unprecedented surge in India’s mid-market and wellness tourism sectors.
How does the partnership between CG Hospitality and Marriott align with the growing demand for midscale and upscale hospitality in emerging markets?
Since the mid-2000s, CG Hospitality has strategically focused on the mid-market segment. This aligns perfectly with Marriott’s expertise and ambition to penetrate this sector. Early on, we identified the untapped potential in midscale markets across India and began acquiring land parcels in key cities like Kochi, Surat, and Greater Noida. While bureaucratic hurdles delayed some of our early projects, we remained committed to this space. By 2014, we became majority shareholders in Concept Hospitality, which manages The Fern brand.
Today, we are scaling rapidly, with 40 hotels in the pipeline and nearly 30 opening annually. Marriott, too, has recognized the mid-market’s immense potential post-COVID, as domestic demand surged. Together, we are uniquely positioned to address this market’s growth, leveraging Marriott’s global systems and CG’s local expertise.
With the midscale and upscale markets growing rapidly, what specific strategies will CG Hospitality employ to stay ahead of the competition?
The foundation of our strategy is our collaboration with Marriott. By combining Marriott’s technological and operational strengths with our deep understanding of the Indian market, we aim to scale rapidly. Our focus will remain on opening 80 hotels annually to capture untapped demand.
Moreover, our commitment to eco-sensitivity and sustainability will continue to resonate with developers and consumers alike. This dual approach of scale and eco-consciousness ensures CG Hospitality maintains a competitive edge.
How does CG Hospitality plan to capitalise on India’s wellness tourism market?
Wellness is a multi-trillion-dollar industry, and we are keen to expand our footprint in this space. Our flagship wellness resort, The Farm at San Benito in the Philippines, has been a tremendous success. Now part of Marriott’s Autograph Collection, it serves as a model for our expansion into India.
We are actively exploring opportunities in Maharashtra, given its robust market potential, and envision further developments in southern India, leveraging its Ayurveda heritage. Wellness is a natural complement to our hospitality portfolio, and we intend to invest heavily in this segment.
As CG Hospitality grows in collaboration with global brands like Taj, Hilton, and Fairmont, how have these partnerships shaped your strategy in India?
Our hospitality journey began with Taj over 25 years ago. Partnering with such an iconic brand has provided invaluable lessons in luxury and service excellence. Today, we collaborate with Taj across six countries, managing 17 properties.
Similarly, our relationships with other global brands like Hilton and Fairmont have broadened our expertise and strengthened our ability to deliver exceptional experiences. These partnerships serve as a foundation for our growth in India, providing insights into both operational excellence and brand management.
The Indian market is pivotal to CG Hospitality’s portfolio. How does it influence your plans for a potential IPO?
India contributes significantly to our global portfolio, with The Fern alone managing over 120 properties. The country’s robust mid-market demand makes it a key growth driver.
Listing our hotel business is under consideration, and Indian performance will play a crucial role in shaping this strategy. With our continued expansion and the strengthening of our brand portfolio, we are well-positioned for this next step in our corporate journey.
If the Indian stock market maintains its current trajectory over the next three to five years, an India-focused story becomes indispensable for listing. Our long-term strategy aligns with this ambition, and we view India as a crucial component in achieving the scale required for a successful public offering.
Are you on track to achieve the 2025 target of 200 hotels and 12,000 rooms?
Yes, we are seeing significant progress. As of now, we have reached 195 hotels, keeping us well on track to surpass the 200-hotel milestone by 2025. This consistent growth reinforces our ability to meet and exceed our ambitious goals.
How will CC Hospitality maintain operational independence while collaborating with a global giant like Marriott?
Collaboration with Marriott enhances our operational capabilities. Marriott significant investments in digital platforms and optimisation strategies provide a robust framework for growth. Their loyalty program and global reach complement our expertise in mid-market hospitality. Together, we aim to maximise profitability and operational efficiency, ensuring a win-win for both organisations.
What is your long-term vision for CC Hospitality?
We envision ourselves as a regional-global growth player, adept at operating, developing, and managing assets across all hospitality segments. By leveraging strategic partnerships with leading global brands and focusing on our own brand growth, we aim to remain at the forefront of the hospitality industry. Our multi-pronged approach ensures we are well-positioned to meet evolving market demands.
What differentiates The Fern brand within the competitive mid-market hospitality space?
The Fern has long been synonymous with eco-sensitivity and sustainability. The brand’s ethos resonates strongly in India and is a cornerstone of its identity. Our collaboration with Marriott amplifies this value by introducing Series by Marriott, a global brand inspired by The Fern. This hybrid branding allows The Fern to retain its identity while benefiting from Marriott’s global loyalty programs and distribution networks.
This partnership brings a unique proposition to the Indian market, blending local heritage with global operational excellence, thereby setting The Fern apart in the midscale segment.
CG Hospitality has set an ambitious target of 500 hotels by 2030. What are the key drivers behind this expansion?
India’s infrastructure development is a primary catalyst. As new highways, airports, and urban centres emerge, they create opportunities for mid-market hospitality. Additionally, state governments are increasingly incentivizing investments in the sector, through tax breaks and policy support.
Our focus lies in tier-II and tier-III cities, where mid-market hotels are the first to meet the demands of growing urbanisation. With purchasing power rising in these regions, we see enormous potential to expand The Fern’s footprint, offering world-class service at accessible price points.
With ongoing developments in destinations like Thailand and Bhutan, what lessons can you apply to strengthen your operations in India?
Our experiences in markets such as Thailand, Vietnam, and Bhutan have underscored the importance of partnering with the right local entities and identifying opportunities in regions that prioritize hospitality development. For example, in East Africa, challenges in banking and geopolitics influenced our exit. Conversely, in markets like Maldives and Dubai, strong partnerships and favourable policies have facilitated success.
India benefits from lessons learned in these diverse markets chief among them, ensuring robust local partnerships and alignment with government priorities to foster growth.
How many properties does CG Hospitality own in India, and what is their current development stage?
In India, we own four safari lodges and two properties under The Fern A brand. Out of our global portfolio of 195 properties, we hold investments or joint ventures in approximately 50 to 60 properties worldwide. However, the Indian market remains a vital segment of our growth story.
What are the key brands under CG Hospitality, and how do they complement each other?
Our core brands include, The Fern, Zinc, and Beacon. Additionally, The Farm, our wellness brand in the Philippines, sets the benchmark for eco-luxury and wellness tourism. We also collaborate with global hospitality giants like Marriott, Accor, Fairmont, and DoubleTree by Hilton. These partnerships allow us to operate under diverse brand umbrellas while retaining our unique identity.
What challenges and competition do you foresee in India’s hospitality sector?
Challenges and competition are intrinsic to growth. India’s hospitality landscape is evolving rapidly, with new brands entering the market. This signals strong economic growth and a burgeoning customer base. For instance, brands like Oberoi and St. Regis entering Nepal indicate rising potential in such markets.
Our strategy, honed over 25 years, focuses on emerging and frontier markets, which often become global growth centres. While challenges like manpower shortages and policy barriers exist, resilience and adaptability are our hallmarks.
Manpower remains a pressing issue in the hospitality industry. Do you have specific plans to address this challenge?
We have considered establishing a hospitality school in Nepal, given our leadership in the education sector there. While we havent formalised this yet, we remain open to exploring opportunities, including partnerships with established institutions, to nurture talent for our growing operations.
Can you elaborate on your asset-light strategy with Marriott?
Marriott’s role as our partner is to drive digital strategy, revenue growth, and overall operational excellence. However, the core management of properties will remain under Concept Hospitality, which operates A, The Fern. Together, we aim to leverage Marriott’s colossal platforms and global networks to strengthen our team and expand our footprint.
What is CG Hospitality’s ultimate vision for growth?
As my father often says, “It is the story of a small man from a small country with big dreams.” This ethos drives us. We aim to scale to unprecedented heights while maintaining our values of resilience and ambition. Our goal is to continue walking this path and create a legacy of excellence in hospitality.
