Indian Hotels Company Limited (IHCL) reiterated its commitment to becoming the most recognizable and profitable hotel company in South Asia by 2025–26 after evaluating the progress of the ‘Ahvaan 2025’ strategy’s first year. By 2025–2026, the company plans to increase the number of hotels in its portfolio from the present 263 to 300 by keeping the portfolio’s mix and EBITDA margins constant.
The Ahvaan 2025 strategy aims to create value by growing its reimagined businesses, restructuring its portfolio, and reengineering its existing business. The hotel operator wants to retain a 50:50 mix of owned and managed or leased assets in its portfolio while expanding it. It also wants to keep its EBITDA margins around 33%, with a 35% EBITDA share from new business and management fees.
Explaining the Ahvaan 2025 strategy, Puneet Chhatwal, managing director and chief executive officer, IHCL, said, “Ahvaan 2025, our comprehensive strategy to be an iconic and profitable hospitality ecosystem, has witnessed a strong start. With four consecutive quarters of record financial performance, the company achieved an all-time high PAT of over INR 1,000 crores and maintained zero net debt status.
In the last 12 months, IHCL expanded its portfolio to 263 hotels and attained an ideal portfolio mix of 50:50 between owned or leased hotels and managed properties.”
“With its reimagined brandscape, industry-leading brands and operational excellence, strong footprint across 125+ cities, as well as the unwavering trust of guests and dedication of all colleagues guided by the ethos of Tajness, IHCL is well poised to deliver on this vision.”
IHCL was able to increase its margin by 15.2 percentage points and raise its revenue by over 20% by re-engineering its traditional businesses. It established a new Indian restaurant concept called Loya, debuted the international Italian brand Papermoon in Goa, and extended House of Nomad and 7 Rivers there.
‘Ginger’ reached a portfolio of 85 hotels as part of the ‘reimagining businesses’ strategy across brands, and it announced a PBT of INR 48 Crores going profitable for the first time. TajSATS, a market leader in airline catering, recorded a PBT of INR 107 crores and an all-time high EBITDA margin of 19.7%. Am Stays & Trails, a well-known provider of homestays, steadily expanded until it had 114 properties in its portfolio.
IHCL announced in a statement that Qmin, its culinary platform, has expanded to include a variety of formats, including the all-day dining at Ginger Hotels, and that it currently has 34 outlets.
By ‘restructuring’ the portfolio, IHCL achieved a 50:50 mix between its owned or leased and managed hotels with the signing of 36 hotels.
Giridhar Sanjeevi, executive vice president and chief financial officer, IHCL, said, “The outlook for the hospitality sector is buoyed by demand continuing to outpace supply. IHCL will seek to tap the strong potential for deeper penetration in emerging cities through prudent capital allocation.”
