CG Group, a multinational conglomerate, plans to gradually take its hospitality company CG Hospitality Global and The Fern brand public over time, according to Rahul Chaudhary, Managing Director of CG Hospitality Global and CG Corp.
“We aim to expand The Fern brand through various avenues. One approach involves utilizing the company’s earnings for investments in hotel ownership and revenue share agreements. Additionally, we are exploring the possibility of partnering with a strategic investor-operator to acquire a minority stake in our ventures,” he explained.
“We want to expand both our distribution network and our presence throughout India, which is why we are doing this. We intend to take the business public in the next two years as our EBITDA increases over time,” he continued.
According to Chaudhary, the company is using a comparable approach for CG Hospitality Global.
Continue Exploring: ITC Hotels charts course for expansion, targets 70 new properties within next five years
“That’s also in line with our strategy. We aim to secure a strategic investor, primarily to institutionalize investments. Subsequently, we plan to lead CG Hospitality towards an IPO within the next few years. Both strategies are progressing concurrently,” he elaborated.
Concept Hospitality/Fern Hotels serves as the management company for CG Hospitality.
By 2025, CG Hospitality aims to manage over 200 hotels. Additionally, the company intends to introduce additional safari lodges throughout India, akin to those already established near Bandhavgarh, Kanha, Panna, and Pench national parks, in collaboration with IHCL.
CG Hospitality currently operates nearly 107 hotels across more than 75 destinations in India. In Gujarat alone, there are over 25 hotels under various brands including The Fern, Beacon, and Zinc.
“We aim to incorporate 20–25 hotels annually under the Fern brand, which translates to adding a new hotel every two weeks. Additionally, we’ve initiated a strategy to expand our safari lodge presence across India, with plans to introduce at least one or two new lodges each year. The safari lodge segment has been remarkably successful for us. It took us nearly 14 years to transform it into what it is today,” he explained.
In addition to this, the company intends to expand its comprehensive medical wellness brand, The Farm, currently established in the Philippines, to India within the coming years. Additionally, it will inaugurate two Taj properties in Bhutan this year. CG Hospitality is also set to debut another hotel in Dubai and has approximately six hotels in various stages of development in Nepal.
“CG Hospitality currently operates in 180 hotels spanning 12 countries. We acquired the two Fairmont hotels in Kenya, located in Nairobi and Masai Mara, prior to the COVID pandemic, and this investment has proven successful for us,” he elaborated.
Continue Exploring: Marriott International sees India as a ‘shining star’ for growth with plans to expand to 250 hotels in next five years
Chaudhary lamented that India’s approach to attracting international tourists has been relatively ineffective, especially given the country’s large population, diverse attractions, and unique locations.
“India must enhance its efforts. The current influx of tourists remains notably low. However, India has made remarkable strides in domestic travel and has shown significant improvement in infrastructure and connectivity.”
“The market dynamics have shifted. India boasts one of the largest middle-class segments, and they are increasingly exploring travel opportunities,” he remarked.
“Prices have surged by 30–40% nationwide. Particularly, rates are elevated for resorts and in less frequented destinations, yet travelers are still willing to pay,” he remarked.
