IHCL lines up Rs 5 000 cr for doubling hotels revenue by 2030

New Delhi, Nov 19 (PTI) Tata Group hospitality firm Indian Hotels Company Ltd (IHCL) has earmarked capex of Rs 5,000 crore to double its number of properties to over 700 by 2030, its Managing Director and CEO Puneet Chhatwal said on Tuesday.
     Under the 'Accelerate 2030' programme, the company is also looking to double its consolidated revenue to Rs 15,000 crore in the next five years, Chhatwal told reporters at its 'Capital Market Day'.
     "We started our aspiration, saying that will be the most iconic and most profitable (hospitality) company from South Asia. Having achieved that, we've just tweaked it a bit, and we say we will be the most valued, most responsible and profitable hospitality ecosystem in South Asia...," he said.
     He further said anything related to the hospitality ecosystem, IHCL would like to be on the forefront of that.
     "And how do we win with this strategy is our expansion of our portfolio...," he said.
     Sharing the company's expansion plans for the next five years, Chhatwal said, "IHCL will expand its brandscape with the launch of new brands, tapping the heterogeneous market landscape and taking its portfolio to over 700 hotels by 2030. Doubling its consolidated revenue to Rs 15,000 crore..."
     At present, IHCL has 350 hotels with 232 operational. Under the five year plan, it is taking up the number of hotels to over 700 with more than 500 operational.
     Subsequently, he said by 2030 the company's total number of rooms will be 70,000 "which means another 30,000 rooms to be added" in the next five years.
     When asked about the capex for the expansion, he said, "It is Rs 5,000 crore over the next five years."
     In terms of new employment, he said IHCL has created around 10,000 direct jobs in the last five years, and "going forward also, we would have a similar number for sure, in terms of creating new talent and new jobs and new opportunities".
     He said the focus will be on driving top-line growth with 75 per cent from traditional businesses and management fee and over 25 per cent from new and re-imagined businesses.
     The company said traditional businesses will be enabled by revenue per available room (RevPAR) leadership, asset management initiatives and inventory expansion of existing assets. The management fee is expected to cross Rs 1,000 crore by 2030.
     New Businesses, comprising Ginger, Qmin, amã Stays & Trails and Tree of Life will rapidly scale through a capital light route, delivering a revenue CAGR of over 30 per cent, it added.
     Chhatwal said up to 90 per cent of the company's expansion plan will be "centered around India and South Asia" but IHCL will not shy away from increasing international footprints, specially in cities like London if the right opportunity comes along.
     He said among the brands of the IHCL, only Taj will be considered for global expansion.

(This story has not been edited by THE WEEK and is auto-generated from PTI)