Indian Hotels aims to double its consolidated revenue to ₹15,000 crore, targeting a 20% return on capital employed. The company also plans to expand its portfolio to over 700 hotels, up from the current 350.
Under its ‘Accelerate 2030’ plan, the company will focus on driving top-line growth, with 75% of revenue coming from traditional businesses, and over 25% from new and re-imagined businesses.
Traditional business growth will be driven by RevPAR leadership, asset management initiatives, and inventory expansion of existing assets.
Management fees are expected to exceed ₹1,000 crore by 2030, fueled by growth in managed inventory and not solely like-for-like increases.
New businesses, including Ginger, Qmin, amã Stays & Trails, and Tree of Life, will scale rapidly through a capital-light approach, targeting a revenue CAGR of over 30%. Re-imagined businesses like The Chambers and TajSATS will maintain their growth momentum.
“IHCL has surpassed its guidance by achieving a portfolio of 350 hotels, with over 200 hotels in operation and delivered 10 consecutive quarters of record financial performance. This strong performance, coupled with a robust balance sheet, positions us well to accelerate our growth momentum,” said Puneet Chhatwal, Managing Director and Chief Executive Officer at IHCL.
Indian Hotels will continue to remain net cash positive. “Our capital allocation framework envisages investments towards strengthening existing and building future competitive advantages, through an outlay of upto Rs 5,000 crores over the next 5 years. This investment is expected to be across existing properties and identified expansion projects,” said Ankur Dalwani, Executive Vice President and Chief Financial Officer at IHCL.
Further, Dalwani said the company is committed to its announced dividend policy of distributing 20% to 40% of PAT to the shareholders leaving sufficient cash balance for future greenfields, accretive inorganic opportunities and strategic cash reserves.
Shares of Indian Hotels Company Ltd. are currently trading 2.92% higher at ₹758.70. The stock has rallied about 75% so far in 2024.
