Indian Hotels Company Ltd (IHCL), which belongs to the Tata group and is the largest by market capitalization in India, intends to have 700 hotels in its portfolio ahead of the planned 2030 deadline. This was announced by Punit Chhatwal, Managing Director and Chief Executive Officer. This means the company will need to set new targets for the coming years.
Chhatwal told Business Standard that management expects revised guidance for the Accelerate 2030 program in mid-November. Quarterly results for the quarter ending in September (Q2FY27) showed a 23 percent increase in net profit, reaching 349 crore rupees, and revenue increased by 21 percent, amounting to 2,566 crore rupees compared to the same period last year. In September 2027 fiscal year, the company signed 47 new hotels, bringing the total to 670.
Previously, in 2024, the company aimed to reach 700 hotels by 2030. Furthermore, IHCL raised its consolidated revenue growth forecast for the 2027 fiscal year from 12-14 percent to 15-17 percent. The total number of rooms in its portfolio is 34,800.
During a call with analysts on Wednesday, Chhatwal noted that with 390 operating hotels, the company is on track to exceed the 400 hotel mark in November or, at the latest, by the end of the third quarter. It is planned to open 30 hotels in the second half of the 2027 fiscal year, which will bring the total number to 50 hotels for the entire year.
The company will continue to expand through acquisitions, possessing free cash flow of over 4,369 crore rupees. These funds are expected to be utilized even after the record capital expenditure of 500 crore rupees in the first half of the 2027 fiscal year, which exceeds the previous year's annual capital expenditure. This free cash flow also provides flexibility for investments in hotel modernization, expansion, development of new properties, and asset management opportunities.
IHCL anticipates strong quarters in the future due to high demand for social events and MICE (Meetings, Incentives, Conferences, and Exhibitions), as well as growth observed during the first festivals starting in October. In the quarter ending in September, the company's board of directors approved the merger of IHCL and its affiliate Oriental Hotels Ltd (OHL) through a share exchange. This merger is expected to be completed by April.
Additionally, Chhatwal stated that the share of the Ginger brand, a mid-segment hotel, in the hotel portfolio will remain the largest by number of hotels, exceeding 100 last quarter. Meanwhile, the Taj brand will continue to enhance value for the group. He emphasized that there should be a Ginger hotel in every district (headquarters) of India, and in metropolises like Mumbai or Delhi, there could be between 10 and 40 such hotels.
During the quarter, the firm announced the merger of OHL with IHCL, which is expected to simplify the group's ownership structure, expand asset management capabilities, and accelerate long-term revenue growth. This quarter also saw a 25 percent increase in revenue per available room in same-store hotels domestically, a 25 percent rise in management fees driven by the momentum from new openings, and a 25 percent growth in revenue in the select service segment—which includes Ginger, Qmin, Ama, and Tree of Life—as well as contributions from recent acquisitions Brij and Atmantan. IHCL shares closed at 753.00 rupees on the National Stock Exchange, down by 0.92 percent.