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Indian Hotels Company Limited (IHCL), part of the Tata group, intends to allocate capital expenditure (capex) amounting to 6,000–7,500 crore rupees over the next five years. This was stated by Chairman and Non-Executive Director N. Chandrasekaran at the company's annual general meeting on Tuesday.

Financial Performance and Development Plans

Responding to shareholder questions, Chandrasekaran reported that the company's free cash flow remains stable, at approximately 1,200 crore rupees annually. This allows the company to make capital investments of 1,000–2,000 crore rupees per year. The Taj Bandstand project, a flagship luxury property being built on two acres and featuring 50 floors and 500 rooms near the Bandra Fort, was specifically highlighted as requiring capital expenditure of 2,000 crore rupees.

Strategy and Brand Growth

Chandrasekaran emphasized that the company is committed to spending between 6,000 and 7,500 crore rupees on capex over five years. India's largest hotel company achieved an operating income of 9,689 crore rupees, with 69 percent of this income attributed to the luxury-focused Taj brand. As part of the Accelerate 2030 plan, the goal is to reach consolidated revenue of 15,000 crore rupees and expand the network to over 700 hotels, increasing from the current number of 630, of which 375 are already operational.

Acquisitions and International Expansion

Over the past year, the company has made several acquisitions, including ANK Hotels, Pride Hospitality, and Brij Hotels. Pointing to a cautious approach to international expansion, Chandrasekaran noted that the Taj hotel in Frankfurt will open this year. He also stated the intention to maintain a balance between owned properties and management contracts, despite the latter being a faster route to growth, they present a challenge in maintaining quality.

Economic Impact on Tourism

Chandrasekaran added that while the arrival of foreign tourists has slowed due to global uncertainty, domestic tourism has shown steady growth thanks to India's resilient economy. He commented that the world economy continues to go through a period of uncertainty due to geopolitical tensions, changing trade dynamics, technological shifts, and evolving consumer patterns. Despite all difficulties, global economic activity has remained relatively robust, as confirmed by the IMF forecast of 3.1% global growth in 2026 and 3.2% in 2027.

He specifically highlighted India, calling it one of the fastest-growing economies globally. From the perspective of the hospitality sector, India represents a very attractive market because the sector benefits from several structural factors and advantages: growing disposable income, expanding transport accessibility, continuous infrastructure investment, and rising public aspirations, all supporting the hotel business. Over the year, domestic tourism continued to grow at a steady pace, while the influx of foreign tourists decreased due to global uncertainty.