According to Indian Hotels Company (IHCL) MD and CEO Puneet Chhatwal, the company aims to have 300 hotels in its portfolio over the next three to four months through expedited portfolio expansion.
We had earlier established the objective of attaining the 300-hotel milestone by 2025-2026 under our Ahvaan 2025 strategy. In addition to opening two hotels per month, we are also signing approximately 2.5 contracts each month. That pace is quick. "We had said in our aspiration 2022 that we will open 15 hotels a year," he added.
In January, IHCL announced that 85 additional hotels are in the works to join its existing portfolio of 285 properties.
For the quarter ending December 31, 2023, IHCL, which is supported by the Tata Group, recorded ₹1,964 crore in revenue from operations, an increase of 18% over the same period in the previous year.
Profit after tax for the hospitality network came in at ₹477 crore, an increase of 18% when compared to the quarter ending December 31, 2022.
We expect our management fee income to reach approximately ₹450 crore by the conclusion of current fiscal year. "Five to six years ago, it was definitely not even ₹200 crore," Chhatwal stated.
Our current projection is 33%, up from an average of 13.6% for the chain from 2009 to 2017. Quite a rise, I must say. Thus, the shift in the company's strategic direction is to blame. I'm adding that we're creating great operating leverage through innovation in new companies and asset management in current hotels and management contracts.
He boasted that Indian Hotels has no net debt, plenty of cash on hand, and excellent prospects for expansion through organic and inorganic means.
We generated ₹1,000 crore in cash last year. He predicted that there would be more this year based on current trends.
Without a doubt, we will continue to be the market leaders. We are planning to open two hotels per month for the next three years, even if we cease signing contracts today, because we already have 85 hotels in the pipeline," he continued.
According to Chhatwal, the firm is currently considering a Taj property in Ayodhya, in addition to signing assets for its Vivanta, Ginger, and SeleQtions brands.
Our dedication to covering spiritual places will only intensify, and no one does it better than us. In addition, 66 of our 285 hotels are located in places of worship, he said.
According to him, the hospitality, airline, and restaurant industries are all directly tied to India's GDP development, which means the country is on the road to prosperity.
Events will continue to be held at venues including Bharat Mandapam, Yashobhoomi, and the Jio World Centre. "The government is investing in infrastructure, and programs like PRASHAD and the UDAAN scheme are creating new opportunities," he added.
Additionally, customer habits have shifted since COVID. Long weekends are becoming popular for people to take trips, something we didn't have the idea of earlier. In the local market, we had never seen such a significant capacity to charge more before Covid. "We were dependent on international clients in the past," he continued.
By Anumeha Chaturvedi & Vinod Mahanta
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