From Taj To Ginger: IHCL Brands Now Stand On Their Own As Demand Outpaces Supply

The Taj Mahal Palace Hotel in Mumbai is operated by the Indian Hotels Company. (Photo source: Saman Arora/Unsplash)

Indian Hotels Company Ltd. Managing Director and Chief Executive Officer Puneet Chhatwal said the group has now delivered 14 straight quarters of strong performance, in line with its market guidance. In addition, he added that the Brands have gained independence and are standing on its own.

The company's sustained growth, he said, is driven by a combination of strong demand, margin expansion through its asset-light model, and the independent strength of its diversified brands.

“Demand continues to outpace supply,” Chhatwal noted, adding that this fundamental imbalance in the hospitality market has underpinned the company's consistent topline growth and profitability.

He highlighted that IHCL's fee-based growth strategy—anchored in management contracts and asset-light expansion—has worked well for margin improvement. “Our not-like-for-like growth has been working very well for us in terms of margin expansion because it's mostly based on a fee-based model,” he said.

The company has also benefitted from its comprehensive asset and brand management strategy, with significant investments in renovations, digital initiatives, and artificial intelligence. “Each of our brands now stands on its own feet—no longer dependent on the Taj. Each business contributes depending on its life cycle, with Taj continuing to lead,” Chhatwal added.

Ginger, the group's budget brand, is growing rapidly and is now approaching Rs 1,000 crore in topline, up sharply from under Rs 300 crore seven to eight years ago.

Qmin, the company's food delivery platform, recently crossed Rs 100 crore in GMV, reflecting its growing consumer reach.

Ama Stays & Trails, IHCL's homestay business, recorded a six-month growth phase.

The non-aviation catering business under Taj SATS has expanded swiftly to around 12% of overall catering revenues.

These newer businesses are still transitioning from infancy into a growth phase, Chhatwal explained, pointing out that the company's focus on building independent, scalable verticals has started to yield results.

Chhatwal reaffirmed IHCL's guidance of double-digit topline growth, backed by rising revenue per available room (RevPAR), expanding fee income, and continued portfolio upgrades.

Renovation expenses are expected to remain elevated in the second half of the year due to high occupancy across destinations, but profitability remains strong. “Our margins are very healthy—we achieved nearly 35% last year, and we see no reason why we would not be able to match or even exceed that,” he said.

“We are opening around three hotels a month. By the end of the year, we should easily open around 36 hotels and could even reach 40,” Chhatwal revealed.