IHCL Continues On Accelerated Growth Path With Record Portfolio Expansion
MUMBAI, AUGUST 26, 2022: Indian Hotels Limited (IHCL), India’s largest hospitality company, has continued to chart its journey of rapid expansion, with an industry-leading signing of 50new hotelsin addition toopening 27 new hotels in the past 24+ months. This period marks IHCL signing the most number of hotels in Indiain both, 2020 and 2021,adding over 5,500 keys to its portfolio*.
|VAST FOOTPRINT ENVELOPING THE INDIAN SUB-CONTINENT|
|– IHCL has a presence in over 100 locationsacross India- Expansive footprint in 31 out of 36 States and Union Territories in India- Rich history of pioneering destinations such as Goa, Rajasthan, Kerala, Bhutan, Nepal and more recently, the Andaman Islands and North-East India– IHCL is also developing key tourism destinations such as Diu and Lakshadweep, for which it has recently received the letter of awards for two hotels in each destination- The company has continued to develop key tourism circuits such as the Himalayan, spiritual and safaris circuit- IHCL is the only Indian hospitality company with marquee hotels in key global destinations such as London and New York, in addition to Sri Lanka, Dubai, Maldives and South Africa among others|
|DIVERSE BRANDSCAPE TARGETING MULTIPLE SEGMENTS|
|– As envisioned in ourAhvaan 2025 strategy,IHCL aims to expand its current portfolio of 242 hotels to 300 hotels– Taj, the iconic luxury brand and the World’s Strongest Hotel Brand, is slated to grow to 100 hotels– With a global presence in key markets, the Taj brand offersauthentic Palaces, city hotels, world-classresorts, serviced residences and safaris– The Vivanta and SeleQtionsbrands, offering contemporary and distinct experiences, respectively, will scale to a portfolio of 75 hotels– Ginger – which is revolutionizing the lean luxe market – will be an important growth vehicle and will scale to 125 hotels – ‘amã Stays & Trails’, India’s first branded homestay portfolio, will scale to500 properties by 2025|
|RESPONSIBLE APPROACH TO GROWTH|
|– IHCL will focus on re-structuring its portfolio to achieve a 50:50 mix between its owned/leased and managed hotels, which currently stands at 54:46– This will include a combination of management contracts for Taj, SeleQtions and Vivanta hotels, while Ginger’s expansion will be driven predominantly through operating leases– IHCL will continue to make smart investments in strategic assets for long-term growth such as Ginger Santacruz and the two upcoming hotels in Kevadia- These investments will be enabled by unlocking capital through strategic partnerships, monetization and simplification– The focus on maintaining strategic assets will see IHCL retain the iconic Taj Malabar Resort & Spa, Cochin within its fold|
Commenting on IHCL’s accelerated growth, Mr. Puneet Chhatwal, Managing Director & Chief Executive Officer, IHCL, stated, “IHCL has continued on its trajectory of portfolio expansion in a rapidly evolving hospitality landscape, with two signings each month over the last 24 months. This has been supported by a fast-paced opening of hotels.IHCL is well-poised to meet our goal of a 300-hotel portfolio by 2025, driven by an asset light model to achieve profitable growth. We look forward to the continued support of our owners and partners who have reposed their trust in us.”
Suma Venkatesh, Executive Vice President – Real Estate and Development, IHCL, further added, “Having the maximum number of signings in India in the past two years is a testament to the power of our brands. IHCL continues to be the preferred partner for investors, enabling us to develop long-term partnerships across multiple projects.The long-term renewal of our agreements is a testament to the stakeholder value IHCL creates.”
IHCL will look to strengthen its presence in key global markets that have substantial customer crossover with India, through strategic partnerships. The recent opening of Taj Exotica Resort & Spa in Dubai is in line with this vision.