VLCC enters residential wellness; to spend $100m

Kolkata: Wellness, beauty services, products and vocational training major

VLCC

will spend around $100 million for the next three-five years as it has entered into an exclusive partnership with hospitality and leisure conglomerate

Minor Hotels

to pioneer the concept of

residential wellness

outside India.

On its foray into wellness tourism, VLCC Group chairman

Mukesh Luthra

told TOI: “With our 30 years of expertise, it was only a matter of time for us to venture into the fast-growing global wellness tourism sector and we had to take the first-mover’s advantage. In Minor International, we have found a very able ally to build this space within a very conducive ecosystem. We are already a 1,200crore-strong company with presence in 14 countries across South and South East Asia, the GCC, and East Africa. This will give a further boost.”

VLCC will spend on manpower and wellness products and tools via internal accruals.

As part of the deal, VLCC will develop and operate therapeutic wellness, beauty centres, both residential as well as standalone, at 50 overseas properties of Minor Group by the next 18 to 24 months. In the first year, the wellness major will pump in $25 million.

TOI on September 17 this year had first reported that the VLCC was all set to open residential wellness centres in association with an international hotel chain and looking to acquire one or two big players in its domain in India and was in talks with three to four such firms over the last few months.

The first residential wellness operations will begin with Minor Hotel’s signature 70 acre, 196-room beach-side property, Avani+ Hua Hin Resort in Thailand, which is planned to be operational by the first quarter of next financial year.

VLCC is aiming to garner 50% of its revenue from the global expansion, Luthra added. Minor is a hotel owner, operator and investor with a portfolio of 523 hotels and resorts under the Anantara, AVANI, Oaks, Tivoli, NH Collection, NH, nhow, Elewana, Marriott, Four Seasons, St. Regis and Radisson Blu brands in 53 countries. William E Heinecke, chairman and founder of Minor, said, “We want to provide optimal hotel facilities.” The global wellness economy was valued at $4.2 trillion in 2017.


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