Indian Hotels to double property and revenues by 2030

Indian Hotels Company Limited (IHCL), the holding company of the Taj group of hotels, on Tuesday announced a comprehensive growth strategy to take the number of properties to more than 700 and double annual revenues to Rs15,000 crore by the year 2030.

IHCL, already India’s largest hospitality chain, plans to build on its brand to grow both revenue and margins under the 2030 growth strategy. 

The number of hotels with the IHCL tag has reached 350, with 200 of these already in operation. Also, these hotels have been delivering strong performance for the past 10 consecutive quarters, Puneet Chhatwal, managing director and chief executive officer of IHCL, said while announcing the group’s growth strategy.

The 5-year strategy is built on the group’s strong performance and robust balance sheet as also the rising affluence stemming from the successive high growth rate of the Indian economy, he said.

In fact, with the government's focus on infrastructure development, he said, the demand for hotel space is outpacing supply.

IHCL will tap the heterogenous market and tourism potential of the country to launch new brands, yet remain rooted to its commitment to responsible and profitable hospitality, he said.

Also, according to the CEO, for India, which is aiming to grow to the world’s third largest economy, from fifth at present, along with other attributes like leisure trips, business conferences, board meetings etc, a well developed hospitality ecosystem is also one of the important attributes.

Besides, he said the country is yet to realise its full tourist potential. A growing economy should also be attracting more foreign tourists, he added.

Chhatwal said the company will be operating The Claridges hotel in New Delhi from April under an agreement.

IHCL added a record 42 properties to its portfolio, taking the total number of hotels under the group to 350 and expects to open two hotels a month, he said.

Management fee is expected to cross Rs1,000 crore by 2030, as the share of managed inventory increases, while revenues from new businesses, comprising Ginger, Qmin, amã Stays & Trails and Tree of Life scale will grow at a CAGR of 30 per cent with scaled up operations.

IHCL posted a consolidated net profit of Rs583 crore in the July-September quarter of the current fiscal, against Rs179 crore a year earlier. Revenue grew 27 per cent to Rs1,826 crore during the quarter.

Operating profit for the fiscal first half more than doubled to Rs843 crore from Rs 415 crore a year ago, while revenue for the quarter grew 16 per cent to Rs3,376 crore.

This is expected to grow further with the addition of new business segments, he added.