DS Group, a leading Indian FMCG conglomerate, has reported a 12% increase in room revenues and 75% occupancy in its hotels over the past year. Capitalizing on this success, the company is expanding its hospitality offerings to meet the growing demand. With current locations in Jaipur, Guwahati, Nainital, and Jim Corbett, DS Group plans to add 250 more rooms to its portfolio by 2025. This move aligns with India's year-round tourism growth and increasing demand for accommodations due to conferences, weddings, and weekend events. The company intends to invest Rs. 500 crore in expanding existing hotels and another Rs. 500 crore in new hotel developments.
DS Group, a prominent Fast Moving Consumer Goods (FMCG) conglomerate in India, witnessed a 12% increase in room revenues in the previous year, coupled with an occupancy rate of 75%. Capitalizing on this success, the company plans to expand its room offerings to cater to the growing influx of tourists. DS Group's current hotel locations span Jaipur, Guwahati, Nainital, and Jim Corbett, complemented by retail brands such as Le Marche and L'Opera. Moreover, DS Group has forged partnerships with renowned brands like Laderach, a luxury Swiss chocolates brand.
DS Group excels in various sectors, including food and beverages, confectionery, mouth fresheners, and hospitality. Their impressive brand portfolio includes household names like Catch (offering spices, salts, and pastes), KewalMasalam, and Ksheer. With an impressive annual revenue of Rs. 5,500 crore, the company is setting its sights on achieving a 15% annual growth rate in the hospitality sector.
India has emerged as a prime destination for investments in both the tourism and hospitality sectors. Unlike the past when tourism was seasonal, post-COVID travel has become an integral part of life, resulting in rapid and year-round growth in the tourism industry. The consistent demand for rooms, with seasonal tariff increases, provides a compelling incentive for DS Group to invest further in the hospitality sector.
To meet this growing demand, DS Group plans to extend its lodging and hotel offerings in the northeast and northern regions of India. Their portfolio already includes well-known hotels like Radisson Blu in Guwahati, Crowne Plaza in Jaipur, and Holiday Inn Express in Kolkata. The DS Group has also taken over hotels facing insolvency, such as the Viceroy Bangalore Hotels, which owns the Marriott-managed five-star Renaissance Bengaluru Race Course Hotel.
By 2025, the company intends to add an additional 250 rooms to its hotel portfolio, capitalizing on the year-round growth in tourism. The rise in conferences, weddings, and weekend events further boosts the hospitality industry's revenue. To accommodate this expansion, DS Group plans to invest Rs. 500 crore in expanding its hotel portfolio and an additional Rs. 500 crore in developing new hotels to meet the industry's growing demands.
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