In the last 24 months, IHCL has expanded rapidly with two hotel signings every month.
New Delhi:
Tata Group’s hospitality firm Indian Hotels Co Ltd on Friday said it is on track to achieve its target portfolio of 300 hotels by 2025.
The company currently has a total of 242 hotels with 29,000 rooms across brands like Taj, Selections, Vivanta and Ginger, with 61 under development.
As part of its ‘Challenge 2025’ strategy, IHCL said it will expand its footprint in relatively untapped destinations such as Northeast India apart from key global markets with substantial customer crossover with India through strategic partnerships.
Puneet Chhatwal, Managing Director and CEO of the company said in a statement, “In the last 24 months, IHCL has expanded rapidly with two hotel contracts every month.
“IHCL is well positioned to meet our target of a 300-hotel portfolio by 2025, driven by an asset-light model to achieve profitable growth,” he added.
As part of the expansion, the company’s flagship Taj will have 100 hotels by 2025 from the current 89.
Similarly, the Vivanta and Salespeople brands will grow to a portfolio of 75 hotels from the current 64. A company official said that the number of another brand, Ginger, will increase to 125 from 89 at present.
IHCL is expanding its branded homestay portfolio ‘M Stay & Trails’ from the existing 98 bungalows to 500 properties by 2025.
In terms of geography, an IHCL spokesperson said, “We will continue to strengthen our presence in major metros, financial and state capitals, major Tier II cities, commercial hubs and popular tourist circuits. We will continue our legacy of new pioneers. destinations by expanding our footprint in relatively untapped destinations such as the North-East.”
In addition, IHCL will also look to further strengthen its presence in “key global markets with substantial customer crossover with India through strategic partnerships”.
“This includes destinations across the Indian subcontinent, in cities that are on popular travel routes, especially among Indian expatriates. The Middle East will continue to be a strong focal point for us – we have a fourth Taj Hotel in Dubai and one in Mecca. is currently in the pipeline,” the spokesperson said.
As part of its ‘Ahwaan 2025’ strategy announced in May earlier this year, IHCL had said it would target a portfolio of 300 hotels, with 35 per cent EBITDA share contribution from new businesses and 33 per cent EBITDA margin by FY2025. Management fee- 26.
As part of the programme, the hospitality firm said it is also focusing on restructuring its portfolio to achieve a 50:50 mix between its owned/leased and managed hotels, which is the current trend. At 54:46 am, while there will be a combination management contract for Taj, Selections and Vivanta Hotels, the expansion of the Ginger brand will be driven primarily through operating leases, the company said.
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