IHCL Plans Aggressive Expansion

11 Nov 2024 , 11:40 AM

According to IHCL MD and CEO Puneet Chhatwal who talked to ET, the Tata Group-backed Indian Hotels Company (IHCL) will soon release a new “strategic matrix” that will be more aggressive than the previous ones and quicken the rate of expansion from a high base.

Chhatwal stated that he is “confident” of the forecast after examining the chain’s previous ten quarters as well as the immediate outlook for the current and next quarters.

It’s noteworthy that the second quarter has outperformed the first, which is unusual because the second quarter normally declines. This has been a remarkable result, especially in light of the fact that elections were conducted in the midst of intense warm weather the prior quarter,” he remarked.

“The double-digit growth predicted by the market is well within reach—and by double-digit, we’re not talking about 10%, it could be 12%, 14%, or even higher,” he continued. In the September quarter, IHCL reported a consolidated net profit of Rs 583 crore, more than tripling its previous year’s profit of Rs 179 crore.

In the three months ending in September, the hospitality chain’s revenue increased by 27% to Rs 1,826 crore. This month, IHCL also revealed that it had acquired a majority share in Tree of Life Resorts & Hotels’ operating business.

Our goal for Tree of Life is to create a chain of high-margin, intimate, experience-driven boutique hotels, he stated.

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