Market Leader Signed 85 properties last year, with 40 new openings, taking its portfolio to 360 hotels.
How many hotels did u open this year? How many new signings? In which brand and how many rooms?
IHCL set new growth benchmark with 85 signings and 40 openings in 2024, taking its portfolio to 360 hotels with an industry leading pipeline of 123 hotels.
We launched the re-imagined Gateway, a full-service hotel offering in the upscale segment, acquired majority shareholding in Tree of Life brand holding company, adding a boutique leisure offering and entered into a brand license agreement for The Claridges, commencing with management of brand’s landmark hotel in New Delhi, extending IHCL’s luxury portfolio.
Your present portfolio and outlook for the years ahead.Overseas expansions? Where, how many rooms, which brands? Aspirationally, where would these take IHCL to, as a global hospitality chain?
IHCL portfolio as on Dec 31st, 2024.
IHCL remains steadfast in its commitment to realise India’s tourism potential with its vision of ‘Accelerate 2030’, of being the most valued, responsible and profitable hospitality eco-system in South Asia. IHCL will expand its brandscape with the launch of new brands, tapping the heterogenous market landscape and taking its portfolio to 700 hotels by 2030.
Doubling its Consolidated revenue to INR 15,000 crores, scaling new and re-imagined businesses to 25%+ share of revenue and continue to generate industry-leading margins and return on investment, while maintaining its renowned service excellence.”
IHCL will expand its brandscape, deliver industry- leading margins, double its Consolidated revenue with a 20% return on capital employed and grow its portfolio to 700+ hotels while building on its world-renowned service ethos.
How do you expect to become market ready for this expansion? Would talent be a challenge?
Travel & Tourism will be among the top contributors to the country’s GDP and employment for both direct and indirect jobs.
With the shorter gestation period required to develop a ready talent pool for the hospitality industry, employability and employment are key areas that can be addressed by the sector.
IHCL under its industry leading ESG+ framework of Paathya, is dedicated to addressing challenges to bridge the employability gap.
Partnering with state governments, institutions and private players, IHCL creates interventions embedded with business strengths, to enhance employability of less privileged youth. The knowledge partnership by IHCL include training content, inputs on classroom designs, faculty development, on-the job training, joint certification and allied support through our Industry networks.
With 38 skilling centres, we continue to invest in talent pools to support deserving youth and their families, enhancing employment opportunities and contributing to the growth of the hospitality sector.
You have a healthy cash reserve, any inorganic growth envisaged like buying out an entire hotel chain, either in India or overseas?
Our growth strategy will continue to be focused on the Indian Sub-Continent predominantly through the capital light route and select investments. We continue to evaluate any portfolio acquisition opportunities for its strategic fit and value accretive nature.
For international growth, we will grow with the iconic brand Taj through management contracts and selective operating leases. Our focus is on markets with strong brand recall, a significant Indian diaspora and enterprises, in markets such as Southeast Asia, the Middle East, the UK, and continental Europe. Our international pipeline is reflective of these growth plans. IHCL’s international portfolio stands at 27 hotels with 9 in the pipeline in markets like Bhutan, Nepal and Dhaka, Middle East – Riyadh and Dubai and Frankfurt in Germany.
How is the overall share shaping in revenues? Rooms as against F&B?
With a larger share of our operating footprint in India, food and beverage revenue constitutes 40 to 45% share of the total revenue.