India’s hospitality group IHCL to sell assets
The group, according to reports, is also going to avoid owning new properties
According to a report by Economic Times, the group is bracing itself for a slump in consumer spending in India.
The hospitality group plans to dispose of a few of its budget inns in the country’s non-metro areas and lease them back for a fee, the newspaper reported.
The company’s MD and CEO Puneet Chhatwal told reporters that the group is now focussing on more management contracts instead of constructing their own hotels.
IHCl is reportedly taking these steps to cut costs and liabilities as India was witnessing an economic slump.
In addition to that, the grounding of Jet Airways, which according to reports owed IHCL money for catering and rooms for its staff, has forced the hospitality group to write off some dues.