Leveraging the growing tourism boom, the Tata Group-controlled Indian Hotels Company (IHCL) is set to double its hotel inventory, launch new brands, and invest Rs 5,000 crore over the next five years.
IHCL currently controls 12-13% of the branded hotel room inventory in the country, a figure expected to rise to 23% by 2030. From its current portfolio of 350 hotels, including 232 operational properties across multiple brands, the Mumbai-based company aims to expand to 700 hotels, with 500 operational by the end of FY30.
The number of rooms is projected to increase to 70,000 by FY30, up from 42,500, while consolidated revenue is expected to rise to Rs 15,000 crore from Rs 7,000 crore, a top IHCL official said during the ‘Capital Market Day,’ outlining the company’s five-year plan.
Also Read Emaar India to develop Rs 900 cr luxury housing project in Gurugram, eyes Rs 2500 cr topline How are employee hotel stay benefits taxed? The Hosteller secures funding worth Rs 48 crore in Series A round, aims to expand to 10000 beds by March 2026 CRC Group unveils Rs 525 cr ultra luxury housing project in Noida, eyes Rs 800 cr topline
Also ReadBirla Opus Paints unveils its 4th factory in Karnataka with a capacity of 230 MLPA
When asked about the details of new brands, Puneet Chhatwal, managing director and CEO of IHCL, said: “Some things will change but exactly which brand will come at what point we can’t say, but at the moment this journey is based on what we have. There is play possible in branded residences, in extended stay, in something that India has not seen like an all-inclusive brand like it is done in the international markets.”
The company is also considering inorganic growth opportunities, as it has committed to opening more than one new property every week until FY30. “If an inorganic, M&A (mergers and acquisition) opportunity comes up we are generating enough cash so as to fuel the growth and the need for capex that we have. Should there be a nice opportunity coming up which fits with the principle of the evolution of our brand scape that is relevant to the Indian subcontinent, we will look at it,” Chhatwal added.
Meanwhile, IHCL’s share price rose 3% immediately after the announcement but settled at a 2% gain by the close of trading.
» Read More
