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Indian Hotels to exit another Gateway Hotel

( 16:00, 02-Mar-16)

The Tata group controlled Indian Hotels Company, which owns and operates the Taj Hotels Resorts and Palaces, has decided to discontinue its management contract for The Gateway Hotel Rawalkot Jaisalmer, the company said. 

This is the third Gateway branded property that the group has decided to exit in the last three months. Gateway Hotels are upscale hotels and are positioned a notch below the Taj Vivanta brand. According to the Gateway Hotels website, the property in Jaisalmer houses 31-rooms along with 11-tents.

"Taj Hotels Resorts and Palaces and Mallani Hotels Motels and Restaurants Private Limited (Mallani Hotels) have decided mutually to discontinue the management contract for The Gateway Hotel Rawalkot Jaisalmer," IHCL said, without disclosing any details on the tenure of management contract with Mallani Hotels. The group will cease managing the hotel from March 31, 2016.

"The company remains fully committed to honouring all its contractual obligations to stakeholders for the remaining period of management contract," the company said. However, IHCL did not cite any reason for ending the management contract after fourteen years of operating the property.

"Jaisalmer is a highly seasonal market and off-the beaten path. Moreover, with a small inventory it is difficult for a hotel chain to focus on different sources of demand," said a senior hospitality expert.

Post the exit, the Taj Group has a network of 27 Gateway properties spread across the country. The group had three properties in Rajasthan under its upscale brand Gateway in Jodhpur, Jaipur and Jaisalmer.

However, post its decision to exit the Gateway Jodhpur and Jaisalmer, the hotel chain will have only one Gateway branded property in the market.

Source -  Economic Times

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