Indian Hotels set to double hotel count by FY30

Leveraging the growing tourism boom, the Tata Group-controlled Indian Hotels Company (IHCL) is set to double its hotel inventory, launch new brands, and invest Rs 5,000 crore over the next five years.

IHCL currently controls 12-13% of the branded hotel room inventory in the country, a figure expected to rise to 23% by 2030.

From its current portfolio of 350 hotels, including 232 operational properties across multiple brands, the Mumbai-based company aims to expand to 700 hotels, with 500 operational by the end of FY30.

The number of rooms is projected to increase to 70,000 by FY30, up from 42,500, while consolidated revenue is expected to rise to Rs 15,000 crore from Rs 7,000 crore, a top IHCL official said during the ‘Capital Market Day,’ outlining the company’s five-year plan. 

Meanwhile, IHCL’s share price rose 3% immediately after the announcement but settled at a 2% gain by the close of trading. While IHCL’s expansion plans will be spread across Taj, Vivanta, Gateway, Seleqtions and Ginger, the company not ruling out the addition of new brands to its portfolio.

IHCL plans to progressively increase the number of properties under the asset-light model, where the company does not invest in the property, and ownership remains with the development partner. The company aims to nearly double the share of asset-light properties to 70% by 2030, up from 37% in 2018.