Saturday, May 18, 2024
HomeDiversityHospitalityIHCL marks another year of record portfolio expansion 

IHCL marks another year of record portfolio expansion 

Indian Hotels Limited (IHCL), India’s largest hospitality company, marks another year of accelerated portfolio expansion in FY 2022-23. With the signing of 36 new hotels and the opening of 16 new hotels in the past year, it recorded an industry-leading pipeline. The current pipeline stands at 73 hotels.

Commenting on IHCL’s growth, Mr. Puneet Chhatwal, Managing Director & Chief Executive Officer, IHCL, stated, “IHCL has witnessed a tremendous year of growth with unprecedented momentum of portfolio expansion. We signed a record 36 hotels in this financial year, taking our portfolio to 260 properties. With this growth, our managed hotels have now reached a share of 50% from 32% five years ago, resulting in a balanced portfolio mix. This was supported by a fast-paced opening of 16 new hotels. With its iconic brand Taj, IHCL maintains its lead in the luxury segment with 81 hotels in operation and another 17 in pipeline, while the young brand SeleQtions is capitalizing on many conversion opportunities. Vivanta and Ginger have added notable number of hotels and destinations, providing consumers with newer choices.”

Suma Venkatesh, Executive Vice President – Real Estate & Development, IHCL added, “The robust performance is a testament to power of IHCL’s reimagined brandscape. We would like to thank all our owners and partners in reposing their trust in us.” 

Leads in the luxury segment

Taj, the world’s strongest hotel brand and an iconic luxury brand plans to exceed the 100-hotel milestone from its current 98 hotels with the signing of eight new hotels. Taj announced opening two resorts in Lakshadweep, keeping with its strategy of pioneering new destinations in new locations. Taj signed two hotels in Gandhinagar and Raipur to expand into state capitals. IHCL signed a deal to open a Taj hotel in Riyadh, Saudi Arabia, expanding its presence in the metro cities of Bengaluru and Chennai and continuing its focus on key global markets.

The year saw the opening of Sawai Man Mahal Palace and Taj Amer in Jaipur, Taj Wayanad in Kerala, and Taj City Centre New Town in Kolkata, enhancing its leisure offerings.

Achieves balanced portfolio

IHCL achieves a balanced portfolio of owned, leased, and managed hotels in FY 2022–23, as envisioned in its Ahvaan 2025 strategy. Management contracts accounted for 60% of the new signings and were the driving force. The remaining 40% comprised Ginger brand operating leases and a few select investments in Ekta Nagar and Lakshadweep.

Growth through conversions

The year saw a significant uptick in conversions driven by IHCL SeleQtions, the brand with a unique and compelling character fuelled by the power of IHCL’s brandscape. This aligns with IHCL’s plan to expand its brands and hotels with a shorter time-to-market, indicating SeleQtions’ firm value offer for customers. Hotel conversions were secured in Rajkot and Mahabaleshwar, and operating hotels were opened, including Anand Kashi by the Ganges, Rishikesh, Norbu The Montanna, Dharmashala, Jaagir Manor, Dudhwa, and Baragarh Resort & Spa, Manali.

Expansion in Tier 2 & 3 cities

Unlike India’s metro cities, smaller cities with a lesser share of branded rooms have seen phenomenal growth. IHCL has developed a robust pipeline in tier 2 and tier 3 cities by grabbing the opportunity, including 

Vivanta branded hotels in Jammu, Haridwar, Vrindavan, Indore, Jamshedpur, Rajahmundry, Katra, Shillong, and Ginger branded hotels in Gangtok, Durgapur, Asansol, Nagpur, Ayodhya, Paradeep, Bharuch and others.

IHCL has a solid potential to achieve its vision of 300 hotels by 2025 with its current portfolio of 260 hotels.

Subscribe To Newsletter

ICYMI

BRL Editor
BRL Editorhttps://businessreviewlive.com
Business Review Live covers finance, technology, travel, lifestyle, and everything in between through exclusive interviews and analysis, market statistics, digital video, and an expanded array of content formats.