IHCL plans to double hotel rooms, revenue by 2030 with Rs 5,000 cr capex
Mumbai: Tata Group’s hospitality arm Indian Hotels Company Ltd (IHCL) has allocated capex of Rs 5,000 crore to increase its properties to over 700 by 2030, news agency PTI reported.
IHCL Managing Director and CEO Puneet Chhatwal said on Tuesday the company is also aiming to double its consolidated revenue to Rs 15,000 crore over the next five years, according to the report.
Chatwal added while addressing the reporters at its 'Capital Market Day' that the company is planning the expansion under the 'Accelerate 2030' programme.
IHCL's aspirations have evolved over time, said the company's CEO. "We started our aspiration, saying that will be the most iconic and most profitable [hospitality] company from South Asia. Having achieved that, we've just tweaked it a bit, and we say we will be the most valued, most responsible, and profitable hospitality ecosystem in South Asia," he stated.
He added that IHCL aims to lead in every aspect of the hospitality ecosystem, emphasizing the company's strategic focus. "And how do we win with this strategy is our expansion of our portfolio," he remarked.
Detailing IHCL's expansion plans, Chhatwal shared that the company intends to launch new brands to cater to a diverse market, with a goal of increasing its portfolio to over 700 hotels by 2030.
Currently, IHCL has 350 hotels and 232 of them are operational. The number of hotels under the plan will be over 700 with over 500 operational.
By 2030 the company's total number of rooms will reach 70,000, he said, adding that 30,000 rooms to be added in the next five years.
Chatwal said 10,000 direct jobs will be added in the last five years, and a similar number will be added, in terms of creating new talent and new jobs and new opportunities".
The company plans to drive growth with 75% revenue from traditional businesses and management fees, and over 25% from new ventures. Traditional businesses will focus on RevPAR leadership, asset management, and inventory expansion, with management fees expected to surpass Rs 1,000 crore by 2030, the report said.
New ventures, including Ginger, Qmin, am Stays & Trails, and Tree of Life, will expand rapidly through a capital-light model, targeting over 30% CAGR.
Chhatwal stated that 90% of the expansion will focus on India and South Asia, but the company remains open to international opportunities, particularly in cities like London.
Only the Taj brand will be considered for global expansion.
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