Tata Group set to accelerate supply with over 90 new properties in the pipeline
IHCL's target is 300 hotels, achieve a 33% EBITDA margin, and garner a 35% EBITDA by fiscal year 2025-26
Deepika Rao, Executive Vice President of Hotel Openings and Corporate
Photo Source Facebook_Taj Hotels
New Delhi: Tata group's hospitality firm, Indian Hotels Company Ltd (IHCL), announced on Thursday that it expects to speed up its hotel additions in the coming years, with over 90 new properties in the pipeline.
In the fiscal year 2024, the company experienced another year of rapid portfolio expansion, signing 52 agreements and opening 34 hotels, surpassing its market guidance as part of its 'Ahvaan 2025' initiative. Launched in 2022, 'Ahvaan 2025' aimed to enhance margins, revamp brand offerings, and restructure the company's portfolio.
IHCL's target was to establish a portfolio of 300 hotels, achieve a 33% EBITDA margin, and garner a 35% EBITDA share contribution from new businesses and management fees by the fiscal year 2025-26.
Deepika Rao, IHCL's Executive Vice President of Hotel Openings & New Businesses, mentioned, "With a strong pipeline of 90-plus hotels, IHCL's supply addition is poised to accelerate over the next few years, maintaining its leadership in the domestic market and expanding into select international markets."
As India's affluence rises and travel demand grows, IHCL plans to introduce new offerings like upscale full-service hotels to tap into emerging market segments, according to Suma Venkatesh, IHCL's Executive Vice President of Real Estate & Development. Venkatesh also noted, "Our next growth phase will involve leveraging our existing partnerships for multi-hotel projects."
Regarding IHCL's recent accomplishments, Venkatesh stated, "FY 2024 set new benchmarks with 52 signings, averaging one contract per week. Our strategic alliance with 'Tree of Life' resorts added 14 new hotels to the portfolio."
In the current year, IHCL signed new projects in international locations such as Dhaka, Bhutan, Nepal, and Frankfurt.
Domestically, the company's signings included large format hotels at international airports in New Delhi, Cochin, and MOPA Goa, as well as leisure and spiritual properties in places like Alibaug, Bekal, Naukuchiatal, Ayodhya, and Haridwar.
IHCL, with its subsidiaries, operates a range of hospitality brands including the Taj, SeleQtions, Vivanta, and Ginger.
