Indian Hotels Company Limited (IHCL) has opened Taj Paro Resort & Spa in Bhutan’s Paro Valley, extending its 25-year partnership with CG Hospitality Global into a third Himalayan destination.
The 45-key luxury resort sits beneath the iconic Tiger’s Nest Monastery, one of Bhutan’s most revered spiritual landmarks. The opening strengthens IHCL’s position in a market defined by high-value, low-impact tourism – a model that aligns with the Taj brand’s emphasis on heritage and authenticity.
“The eternal charm of the Himalayan Kingdom of Bhutan makes it among one of the world’s most sought-after travel destinations,” said Puneet Chhatwal, Managing Director and CEO of IHCL. “This addition strengthens our over two-decade strong partnership with CG Hospitality Global.”
A partnership spanning five countries
The collaboration between IHCL and Nepal-based CG Corp Global began with investments in Taj properties in the Maldives and Sri Lanka. It has since expanded to encompass operating hotels across five countries, with CG Hospitality investing over ₹1,250 crore in the joint portfolio.
Current properties under the partnership include Taj Exotica Resort & Spa and Taj Coral Reef Resort & Spa in the Maldives, Taj Samudra in Colombo, Taj Jumeirah Lakes Towers in Dubai, two Vivanta hotels in Nepal, and Taj Safaris wildlife lodges in India and Nepal.
IHCL is already present in Bhutan at Thimphu, with a third property planned for Phobjika. The Paro opening positions the company to capture demand across the kingdom’s primary visitor circuits.
Dr Binod Chaudhary, Chairman of CG Corp Global, described the launch as reflective of the “confidence and trust we place in IHCL’s century-old legacy, which continues to be globally recognised as the benchmark of Indian hospitality.”
Designed for Bhutan’s distinctive tourism model
Bhutan operates under a “high value, low volume” tourism policy that has shaped its visitor profile since the country opened to international travellers in 1974. The government levies a Sustainable Development Fee of $100 per night for international visitors (reduced from $200 until September 2027), with proceeds funding environmental conservation, cultural preservation and public services.
The pricing structure naturally filters for affluent travellers seeking authentic experiences rather than mass-market tourism. Taj Paro Resort & Spa is calibrated for this demographic, offering mountain-facing rooms with Himalayan views, regional and international dining at Vista restaurant, and wellness facilities including the J Wellness Circle spa.
The Paro Lounge & Bar features curated Bhutanese wines alongside signature cocktails – a distinctive offering in a market where local beverage traditions remain relatively unexplored by international operators.
Rahul Chaudhary, Managing Director and CEO of CG Hospitality Global, positioned the opening as validation of Bhutan’s luxury tourism potential. “The launch of Taj in Paro, with the unmatched hospitality of the World’s Strongest Hotel Brand, will reaffirm Bhutan as a premier destination on the global tourism map,” he said.
Strategic context: IHCL’s expansion trajectory
The Bhutan opening forms part of IHCL’s broader ‘Accelerate 2030’ strategy, which targets a 700-hotel portfolio by the end of the decade. The company closed FY2025 with 380 hotels, having added 100 new locations through 74 signings and 26 openings during the fiscal year.
Over 95% of recent signings have been capital-light, reflecting IHCL’s preference for management contracts over property ownership. This approach allows faster expansion while preserving balance sheet flexibility.
International growth remains selective, with the Taj brand prioritising culturally significant destinations where Indian hospitality traditions resonate. Recent market entries include Bahrain and Ras Al Khaimah in the Middle East, adding over 800 keys to the regional portfolio.
The CG Hospitality partnership operates through Ekyam, a platform launched in May 2024 to accelerate growth across the Greater Himalayan region, Indian Ocean destinations and wildlife sanctuaries. The platform aims to reach 25 hotels by year-end.
Workforce and operational implications
For hospitality leaders, the Paro opening illustrates how international operators navigate Bhutan’s distinctive regulatory environment. The country’s visa requirements, mandatory local guides for tourists and Sustainable Development Fee create operational complexity that favours established brands with strong local partnerships.
CG Hospitality’s regional presence – the group operates over 178 hotels across 12 countries – provides the local expertise and relationships essential for effective execution. The partnership model allows IHCL to deploy its brand standards and training systems while relying on CG’s ground-level capabilities.
The resort will contribute to local employment in a region where tourism represents a significant economic driver. IHCL reported creating over 2,500 direct jobs through its 26 hotel openings in FY2025, a metric the company highlights as part of its broader economic impact.
Looking ahead
With properties now in Thimphu and Paro, plus Phobjika in development, IHCL is building a circuit offering that allows guests to experience multiple facets of Bhutan under consistent brand standards. This approach mirrors successful models in other heritage destinations where multi-property itineraries command premium positioning.
The timing aligns with Bhutan’s efforts to rebuild visitor numbers following the pandemic-era closure. The halved Sustainable Development Fee through 2027 signals government intent to stimulate demand while maintaining the exclusivity that defines the destination.
For travellers seeking spiritual retreat combined with luxury hospitality, Paro Valley’s proximity to the Tiger’s Nest Monastery creates a compelling proposition. Whether the market supports significant expansion remains to be seen, but IHCL’s measured entry through an established partnership suggests careful calibration of opportunity against risk.
