November 21, 2024
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Indian Hotels set to double hotel count by FY30
Capitalizing on the booming tourism sector, the Tata Group-controlled Indian Hotels Company (IHCL) plans to double its hotel portfolio, introduce new brands, and invest Rs 5,000 crore over the next five years. Currently, IHCL holds 12-13% of India’s branded hotel room inventory, with expectations to increase this share to 23% by 2030. The company, which operates 350 hotels—including 232 active properties across various brands—aims to expand its portfolio to 700 hotels, with 500 properties expected to be operational by FY30.
IHCL’s room inventory is projected to grow to 70,000 by FY30, up from 42,500, while consolidated revenue is set to nearly double, reaching Rs 15,000 crore, compared to Rs 7,000 crore today. Puneet Chhatwal, Managing Director and CEO of IHCL, shared these plans during the company’s ‘Capital Market Day’ event.
When asked about the upcoming brands, Chhatwal noted that while specific details remain undecided, the company is exploring opportunities in branded residences, extended stay options, and unique concepts like all-inclusive brands, similar to international offerings not yet seen in India.
In addition to organic growth, IHCL is also considering inorganic opportunities, including mergers and acquisitions. Chhatwal emphasized that IHCL is generating sufficient cash flow to support its expansion and capital expenditure needs, and would be open to acquisitions that align with the company’s evolving brand portfolio for the Indian market. The company is committed to opening at least one new property every week until FY30.
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