Indian Hotels Company Ltd (IHCL) aims to double its hotel portfolio to 700+ properties and increase its consolidated revenue by 2x, reaching INR 15,000 crore by 2030. This ambitious expansion follows 10 consecutive profitable quarters, strong cash flows, and zero net debt. IHCL plans to grow both organically and through acquisitions, focusing on an asset-light model. New ventures like Ginger, luxury homestays, and boutique resorts are expected to contribute 25% to revenue. With 75% of additions in the boutique leisure and mid-scale segments, IHCL will continue expanding in India, while also growing internationally in select regions.
Indian Hotels Company Ltd (IHCL) has announced its plan to double its hotel portfolio to over 700 properties and grow its consolidated revenue by twofold, reaching INR 15,000 crore by March 2030. This was revealed by the company's Managing Director and CEO, Puneet Chhatwal, earlier this month. The expansion is part of IHCL's 'Accelerate' strategy and follows 10 consecutive profitable quarters, strong cash flows, and zero net debt. The company is optimistic about the future, with structural growth drivers such as GDP expansion, increased disposable income, and a shortage of branded hotel rooms supporting the market.
The growth will be driven by both organic and inorganic means, with IHCL continuing to implement an asset-light model to expand its footprint, according to Chhatwal. He further noted that the company is generating sufficient cash to fund its growth and will remain cautious in generating debt. Chhatwal also stated the company's commitment to becoming the most valued, responsible, and profitable hospitality ecosystem in South Asia.
IHCL, which operates under the prestigious Taj brand, aims to generate 75% of its revenue from its traditional business. Management fees are expected to contribute approximately INR 1,000 crore by FY2030. In addition, new businesses such as the budget brand Ginger, luxury homestays, food delivery services, and boutique resorts are anticipated to contribute 25% to the company's top line.
Ankur Dalwani, IHCL's Executive Vice President and CFO, shared that the company will remain net cash positive and is committed to investing over INR 5,000 crore in capital expenditure across existing properties and new projects. He also confirmed the company's commitment to its announced dividend policy, which includes distributing 20-40% of profit after tax to shareholders.
Currently, IHCL operates a portfolio of 350 hotels, including 232 operational hotels with 28,000 rooms across luxury (Taj), upscale (Gateway, Vivanta), and mid-scale (Ginger) properties and resorts. The company's development pipeline includes 118 hotels with 14,500 rooms under construction. By 2030, IHCL aims to have a portfolio of 700 hotels with approximately 70,000 rooms.
More than 75% of the new hotel additions will come from boutique leisure offerings (Tree of Life), the Gateway brand in the upscale segment, and Ginger in the mid-scale segment. While IHCL will continue to expand internationally, with a focus on West Asia, Thailand, Singapore, and Europe, 90% of its portfolio will remain centred in the Indian subcontinent, as mentioned by Chhatwal.
In conclusion, IHCL is set for significant growth with its ambitious expansion plans, aiming to double its portfolio and revenue by 2030. By focusing on both organic and inorganic growth, maintaining strong cash flows, and expanding its offerings, the company is positioned for long-term success. IHCL's commitment to an asset-light model and strategic regional expansion promises sustained growth.
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