New Delhi: Tata Group-backed Indian Hotels Company ( IHCL) has unveiled its new ACCELERATE 2030 strategy under which it plans to expand its current portfolio of 350 hotels to over 700 by 2030, besides reaching an enterprise revenue mark of over Rs 30,000 crore from Rs 13,000 crore currently.
Under the strategy, IHCL aims to take its number of operational hotels to 500 plus in 2030 from 232 currently, and is targeting consolidated revenues of over Rs 15,000 crore in 2030 from Rs 7,000 crore currently. It aims to take the ROCE (return on capital employed) ratio to 20% in 2030 from 15% currently, and wants to sustain its net cash positive position going forward.
“Our vision is to be the most valued, responsible and profitable hospitality ecosystem. So the revenues should double, the portfolio should double. The ROCE should go to 20% plus, and the NPS stays at 70 plus,” said IHCL MD and CEO Puneet Chhatwal on Tuesday, while unveiling the new strategy.
“IHCL has surpassed its guidance by achieving a portfolio of 350 hotels, with over 200 hotels in operation and delivered ten consecutive quarters of record financial performance. This strong performance, coupled with a robust balance sheet, positions us well to accelerate our growth momentum,” he added.
Chhatwal said enabling this vision are ‘long term structural tail winds’ for the sector including India’s forecasted GDP growth of over 6.5%, government’s continued focus on infrastructure spends, hotel demand outpacing supply and the rising affluence of the consumer base.
Under ‘Accelerate 2030’, IHCL’s focus will be on driving top-line growth with 75% from traditional businesses and management fee and 25% from new and re-imagined businesses. IHCL’s new businesses comprise of Ginger, Qmin, amã Stays & Trails and Tree of Life.
The chain expects its management fee to cross Rs 1,000 crore by 2030, led by not like for like growth and increasing share of managed inventory.
IHCL said the new businesses, comprising of Ginger, Qmin, amã Stays & Trails and Tree of Life will 'rapidly scale' through a capital light route, delivering a revenue CAGR of 30%+, while the re-imagined businesses of The Chambers and TajSATS, will also continue their ‘growth momentum.’
“IHCL remains steadfast in its commitment to realise India’s tourism potential with its vision of Accelerate 2030. IHCL will expand its brandscape with the launch of new brands, tapping the heterogeneous market landscape and taking its portfolio to 700 hotels by 2030,” said Chhatwal.
Under the strategy, IHCL aims to take its number of operational hotels to 500 plus in 2030 from 232 currently, and is targeting consolidated revenues of over Rs 15,000 crore in 2030 from Rs 7,000 crore currently. It aims to take the ROCE (return on capital employed) ratio to 20% in 2030 from 15% currently, and wants to sustain its net cash positive position going forward.
“Our vision is to be the most valued, responsible and profitable hospitality ecosystem. So the revenues should double, the portfolio should double. The ROCE should go to 20% plus, and the NPS stays at 70 plus,” said IHCL MD and CEO Puneet Chhatwal on Tuesday, while unveiling the new strategy.
“IHCL has surpassed its guidance by achieving a portfolio of 350 hotels, with over 200 hotels in operation and delivered ten consecutive quarters of record financial performance. This strong performance, coupled with a robust balance sheet, positions us well to accelerate our growth momentum,” he added.
Chhatwal said enabling this vision are ‘long term structural tail winds’ for the sector including India’s forecasted GDP growth of over 6.5%, government’s continued focus on infrastructure spends, hotel demand outpacing supply and the rising affluence of the consumer base.
Under ‘Accelerate 2030’, IHCL’s focus will be on driving top-line growth with 75% from traditional businesses and management fee and 25% from new and re-imagined businesses. IHCL’s new businesses comprise of Ginger, Qmin, amã Stays & Trails and Tree of Life.
The chain expects its management fee to cross Rs 1,000 crore by 2030, led by not like for like growth and increasing share of managed inventory.
IHCL said the new businesses, comprising of Ginger, Qmin, amã Stays & Trails and Tree of Life will 'rapidly scale' through a capital light route, delivering a revenue CAGR of 30%+, while the re-imagined businesses of The Chambers and TajSATS, will also continue their ‘growth momentum.’
“IHCL remains steadfast in its commitment to realise India’s tourism potential with its vision of Accelerate 2030. IHCL will expand its brandscape with the launch of new brands, tapping the heterogeneous market landscape and taking its portfolio to 700 hotels by 2030,” said Chhatwal.
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