Postcard Hotel, the Indian luxury brand founded in 2018 by former Oberoi Group president Kapil Chopra, is preparing to enter India’s major cities for the first time. The expansion marks a shift from the company’s original strategy of building destination-led retreats in remote locations to an urban model centered on private members’ clubs.
Chopra told Skift that the brand is developing an urban format built around nearly all-suite hotels. Each property will feature a private members’ club designed into the building rather than added as an afterthought. The company is currently in discussions at three locations, with Delhi, Mumbai, Bengaluru, and Hyderabad under consideration for the first such clubs.
High-Rate, Low-Volume Strategy
The economics of the new urban properties rely on high room rates rather than high occupancy volumes. Chopra stated he would prefer to operate 100 rooms at INR 60,000 ($628) per night than 300 rooms at INR 20,000 ($210). He believes this approach can deliver operating margins above 50%.
This pricing strategy places the new hotels at the top end of the market. The INR 60,000 rate is roughly double the INR 25,000 to INR 30,000 average found in top-tier luxury hotels in Delhi and Mumbai. Chopra acknowledged that city break-even occupancy could run between 30% and 40%, which is higher than the roughly 20% occupancy he has cited for Postcard’s leisure properties.
The founder emphasized that the urban format must be financially workable. This means securing a prime location, maintaining an all-suite or nearly all-suite configuration, and integrating the private club from the ground up. The smaller inventory of under 100 rooms is intended to support this exclusive positioning.
Closing the Brand Gap
The move into cities addresses a specific gap in Postcard Hotel’s current business model. The brand has built a portfolio of 12 properties in leisure destinations, including beaches in Goa, tea estates in Assam, and wildlife areas in Gujarat. Guests traveling to these remote retreats often book competitor hotels in gateway cities for the first leg of their journey.
By bringing the Postcard brand to urban centers, the company aims to capture this initial segment of the travel experience. The integration of a private members’ club into the city properties provides a consistent luxury experience for guests before they depart for the brand’s remote locations.
Chopra expressed confidence that enough buyers will pay for this specific format. The focus remains on rate and exclusivity rather than volume, distinguishing the urban properties from standard city hotels. The company is now moving from concept to execution, with active discussions underway for the first three urban sites.
Source: Skift
