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May 25, 2024
Hotels

IHCL’s Year 1 of Growth Roadmap Delivers all Round Results

Ginger Chandigarh, Zirakpur

 ALL TIME HIGH EBITDA MARGINS AND PAT

RECORD YEAR OF SIGNINGS AND OPENINGS

TAJ TOPS 100 HOTELS; GINGER TURNS PROFITABLE; TAJSATS CLOCKS ALL TIME HIGH PROFITS

The Indian Hotels Company Limited, India’s hospitality market leader, today reported its progress under Ahvaan 2025, a strategicplan with an objective of being the most iconic and profitable hospitality company in South Asia. Value creation has been at the cornerstone of this strategy driven by the initiatives of re-engineering its traditional business, scaling its re-imagined businesses and re-structuring its portfolio. As part of this strategy, IHCL aims to build a portfolio of 300 hotels, clock a 33% EBITDA margin with 35% EBITDA share contribution from new businesses and management fees by FY 2025-26.

AHVAAN 2025 – CURRENT SCORECARD

 FY2022-2023FY2025-2026
NUMBER OF HOTELS263300
PORTFOLIO MIX(Owned/Leased: Managed)50:5050:50
EBITDA %32.7%33%
NET DEBTNILNIL
Puneet Chhatwal, Managing Director and Chief Executive Officer, IHCL,
Puneet Chhatwal, M.D and CEO, IHCL

Puneet Chhatwal, Managing Director and Chief Executive Officer, IHCL said, “Ahvaan 2025, our comprehensive strategy to be an iconic and profitable hospitality ecosystem has witnessed a strong start. With four consecutive quarters of record financial performance, the company achieved an all-time high PAT of over INR 1,000 crores and maintained zero net debt status. In the last 12 months, IHCL expanded its portfolio to 263 hotels and attained an ideal portfolio mix of 50:50 between owned or leased hotels and managed properties.

With its reimagined brandscape, industry-leading brands and operational excellence, strong footprint across 125+ cities, as well as the unwavering trust of guests and dedication of all colleagues guided by the ethos of Tajness, IHCL is well poised to deliver on this vision.”

IHCL continues to Re-engineer its traditional businesses achieving a 20% plus growth in revenue, 15.2 percentage points margin expansion. It introduced the global Italian brand Papermoon in Goa; launched a new Indian restaurant concept branded Loya and expanded House of Nomad and 7 Rivers in Goa.

Scaling up its Re-imagined businessesGinger reached a portfolio of 85 hotels and reported at PBT of INR 48 Crores turning profitable for the first time. TajSATS, an industry leader in airline catering clocked an all-time high EBITDA margin of 19.7% and a PBT of INR 107 Crores. amã Stays & Trails’, a branded offering in the homestay market, grew at a steady pace, and is now a portfolio of 114. Qmin, IHCL’s culinary platform has expanded to multiple formats including as the all day diner in Ginger hotels, and has 34 outlets now.

Re-structuring its portfolio, IHCL achieved a 50:50 mix between its owned or leased and managed hotels with the signing of 36 hotels. Taj, ranked as the World’s Strongest Hotel Brand and India’s Strongest Brand as per Brand Finance reached a milestone with 100 hotels.

Giridhar Sanjeevi, Executive Vice President and Chief Financial Officer, IHCL
Giridhar Sanjeevi, Executive Vice President and Chief Financial Officer, IHCL

Sustainable and responsible tourism is the way forward. The company announced a comprehensive ESG+ framework – Paathya which drives IHCL’s sustainability and social impact measures. In its first year, Paathya has made significant progress in the areas of renewable energy, plastic elimination, conserving heritage, and skilling.

Giridhar Sanjeevi, Executive Vice President and Chief Financial Officer, IHCL said, “The outlook for hospitality sector is buoyed by demand continuing to outpace supply. IHCL will seek to tap the strong potential for deeper penetration in emerging cities through prudent capital allocation.”

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