Indian Hotels Company (IHCL) has unveiled a plan to double in scale in just six years, with its new Accelerate 2030 strategy.
Under the plan, the group expects to expands its hotel brands and launch into new segments of the hospitality landscape. It will continue to delight guests by building on its legacy of service excellence. Financially, it has committed to industry-leading margins and returns, with a target of a 20% return on capital employed, from a doubled revenue volume.
Doubling the portfolio
These results will be derived from a portfolio of hotels that will need to double in size, to more than 700 properties around the globe.
Puneet Chhatwal, the managing director and CEO of IHCL, will lead the change. He commented: “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.”
In its growth, the hotel group will be assisted by the strength of its home market. Forecasters suggest India’s economic growth will be strong over the next few years, with GDP improving 6.5% year on year. The Indian government has committed to significant infrastructure spending to support that economic growth, providing new airports and improved road connections. All the indications are that demand for new hotel rooms will outpace supply, providing significant tailwinds for those already active in the hospitality sector, such as Indian Hotels.
“IHCL remains steadfast in its commitment to realise India’s tourism potential with its vision of ‘Accelerate 2030’, of being the most valued, responsible and profitable hospitality eco-system in South Asia,” added Chhatwal. “IHCL will expand its brandscape with the launch of new brands, tapping the heterogenous market landscape and taking its portfolio to 700 hotels by 2030.”
Some of the growth will come from the group expanding into new market segements, including branded residences. ICHL’s brand landscape will also expand with moves such as the recent deal to take over management of The Claridges, an additional luxury hotel offering that complements the group’s existing brands.
Expanding the brands across India
Existing brands will grow to maintain the company’s leadership across India. This will mean steady additions to the Taj, Seleqtions and Vivanta brands, between them adding 100 more hotels. However, a majority of the new additions will be across the Tree of Life, Gateway and Ginger brands, which will jointly account for around 75% of new signings.
Internationally, there are aspirations to establish the luxury Taj brand in many more global gateway cities. Already, work is under way on the conversion of the Grandhotel Hessischer Hof in Frankfurt, Germany ahead of a 2025 relaunch under the Taj brand.
