Indian hospitality company Indian Hotels Company Limited (IHCL) is set to expand its hotel inventory, with an investment of Rs50bn ($592.31m) over the next five years.
Currently holding a 12%-13% share of India’s branded hotel room inventory, IHCL is projected to increase this figure to 23% by 2030, as reported by Financial Express.
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The company plans to launch new brands and expand its current portfolio of 350 hotels to 700 hotels, with 500 operational by the end of the financial year 2030 (FY 2030).
The number of rooms under IHCL is expected to surge to 70,000 by FY 2030, a significant increase from the current 42,500 rooms.
This expansion is anticipated to boost the company’s consolidated revenue to Rs150bn, up from Rs70bn, as stated by an IHCL official during the Capital Market Day.
IHCL managing director and CEO Puneet Chhatwal said: “Some things will change but exactly which brand will come at what point we can’t say, but at the moment this journey is based on what we have. There is play possible in branded residences, in extended stay, in something that India has not seen like an all-inclusive brand like it is done in the international markets.”
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By GlobalDataIHCL’s growth strategy involves opening more than one new property every week until FY 2030, with a focus on both organic and inorganic growth opportunities.
Chhatwal said: “If an inorganic, M&A [mergers and acquisition] opportunity comes up we are generating enough cash to fuel the growth and the need for capex that we have. Should there be a nice opportunity coming up which fits with the principle of the evolution of our brand scape that is relevant to the Indian subcontinent, we will look at it.”
The expansion will be spread across existing brands such as Taj, Vivanta, Gateway, Seleqtions, and Ginger.
The company is also shifting towards an asset-light model, aiming to increase the share of such properties to 70% by 2030.
This model allows IHCL to expand without investing in property development, as ownership remains with the development partner.
A portion of the proposed inventory expansion will target India and neighbouring markets, with plans for properties in Dubai, Bahrain, Thailand, Germany, Saudi Arabia, Singapore and the UK.
However, most of the expansion will take place in India, with IHCL planning to launch up to three international hotels annually.
