ITDC completes 60 years: Are govt hotels losing sheen among galaxy of private players?
Private players step up and re-invent and re-model their strategies to keep up with the emerging trends, says an expert
The India Tourism Development Corporation (ITDC), a public sector undertaking under the Ministry of Tourism, completed 60 years of its existence on Friday.
Incorporated on October 1, 1966, the ITDC has played a key role in developing tourism infrastructure in the country. Presently, the network of the ITDC consists of four Ashok Group of Hotels, out of which three are in operation, one restaurant, four joint ventures having one hotel unit in operation, four catering outlets, three transport units, 14 duty-free shops at seaports, and one at airport.
Mugdha Sinha, Managing Director, ITDC, said, “As ITDC advances into the next phase of its growth journey, coinciding with the Corporation’s 60th year of operations and 70 years of The Ashok, it continues to prioritise strategic transformation, digital enablement, asset optimisation and sustainability-led practices…
“These initiatives are expected to support improved efficiencies, enhance stakeholder value and long-term sustainable growth, aligned with the government’s vision for tourism development. As we move ahead towards Amrit Kaal, we remain committed to balancing ITDC’s legacy with innovation and collaborative models that support the tourism ecosystem,” she added.
The ITDC, however, has had a chequered history, with the government looking at redevelopment of the Ashok Hotel as part of the Rs 6 trillion National Monetisation Pipeline.
Under the plan, bidders could be offered the hotel and adjoining land parcels on a 60-99 year lease under an operation, management and development model.
Built on 11.42 acres, The Ashok has 550 rooms, including 160 suites, and is located just a few hundred metres from the Prime Minister’s residence and several embassies. The winning bidder will be required to refurbish the property to the standards of leading global hotels.
With maximum resources at their disposal, government-run hotels and restaurants still fail to shine in the wide galaxy of private hospitality players.
“There are many factors which distinguish a private hotel from a state-run one. Primary among them is how private players step up and re-invent and re-model their strategies to keep up with the emerging trends,” Chitra Iyer, an expert said.
Netra Reddy, spokesperson, Sunrise Hotels, said, “Clients usually prefer private hotels because high-end services are guaranteed there. The accountability and innovation factors are still missing in government set-ups.”
Former NITI Aayog CEO Amitabh Kant had last year signalled the Centre's intent to exit the non-core businesses, saying the government has no business running hotels as he cited Delhi's iconic Ashoka hotel as an example.
"Let's start with the privatisation of Ashoka hotel in the heart of Delhi. The government of India has no business running a hotel..." he had said at an event in the national capital.
The government has been moving ahead with the privatisation of Delhi’s iconic Ashok Hotel under the National Monetisation Pipeline for the past few years. It plans to lease the five-star property to a private player for 60 years through a public-private partnership.
The hotel will be run under an operate-maintain-develop model to attract investment for modernisation and better returns. The timeline for the deal is still being finalised, and the terms may include a longer lease and extra land for development.
Currently, the Centre owns 87.03 per cent of ITDC while Tata Group’s Indian Hotels Company (IHCL) holds a 7.86 per cent stake.
