Braced For Growth

Over the past few years, the iconic Hotel Ashok, in the heart of Lutyens' Delhi, has been grappling with an uncertain future. First, there were talks of disinvestment, and of late, plans are afoot to lease it out for 60 years to allow private players to redesign, rebrand and run the business. It may sadden old loyalists, but the leasing model seems to be gaining traction as real estate is exorbitantly priced and no one is too keen on large ticket exposure.

The hotel industry has witnessed two key business models brand owned and operated properties and those managed by brands under management contracts. Now comes the leasing model, under which a brand takes over both day to day running and the P&L of the asset, for which the lessor gets a fixed return and at times, an added revenue share, as per the deal. According to Saurabh Gupta, Managing