Orchid Ecotel: The Phoenix Rises from the Ashes
On April 2, 2017, the chairman of Kamat Hotels (India) Limited (KHIL) and his son, the company's chief executive officer, were having breakfast and recalling tough times endured in 2014 after a failed corporate debt restructuring. It had been one of the most important decisions ever made by the public sector undertaking bank-leaving their previous joint lenders and deciding to assign the loan to an asset reconstruction company. The incident had proven to be a turning point for the company. The failure of the corporate debt restructuring mechanism had become an unexpected advantage, and the company never looked back. The two leaders were now focused on their commitment to grow the company in a sustained manner, staying true to the local environmental challenges. With the goal of aggressive growth in several Indian states, the chief executive officer was looking for more hotels to own, manage, or lease in the mid to high segments of the market as an expansion plan. His vision was to someday retire as the owner of one of India's largest hotel assets and to take his family name forward to the next benchmark of Indian hospitality. Was this the best path forward for KHIL? Rama Deshmukh is affiliated with Indian Education Society Management College and Research Centre.