- Indian Hotels Company Ltd. crossed Rs 1,000 crore in quarterly EBITDA for the first time
- IHCL has delivered 15 consecutive record quarters with revenue near Rs 3,000 crore
- Revenue grew 17% in nine months despite travel disruptions and geopolitical tensions
Indian Hotels Company Ltd. (IHCL), the Tata Group's hospitality arm, has crossed Rs 1,000 crore in quarterly EBITDA for the first time, extending its streak of record financial performance and underscoring a structural shift in the hospitality sector.
Managing Director and CEO Puneet Chhatwal said the company has now delivered 15 consecutive record quarters, with revenue approaching Rs 3,000 crore in the latest period. The sustained momentum reflects not just strong demand but a fundamental change in how the sector is growing.
"The sector is demonstrating something unique-it is no longer cyclical in the way it used to be. There is a structural shift underway," Chhatwal said, adding that IHCL's diversified business model has positioned it well to benefit from this transformation.
Growth Momentum Holds Despite Disruptions
IHCL reported 17% revenue growth in the first nine months of the financial year, even as travel disruptions, geopolitical tensions, and weather-related events affected tourism across regions.
According to Chhatwal, demand resilience across leisure, business travel, and marquee events has helped sustain growth. The company expects revenue to grow 12% to 14%, with revenue per available room (RevPAR) projected to rise 8.5% to 10%-a healthy expansion given the elevated base.
As room rates and occupancy levels rise, profitability tends to improve faster due to operating leverage, supporting continued EBITDA expansion.
Asset-Light Strategy and Acquisitions Fuel Expansion
IHCL's growth strategy has increasingly focused on an asset-light model, expanding through management contracts while selectively pursuing acquisitions to strengthen its brand portfolio.
With debt significantly reduced and cash reserves of around Rs 3,900 crore, the company has gained financial flexibility to pursue inorganic opportunities. Recent moves include expansion in the wellness segment through the Atmantan acquisition and scaling up newer brands such as Ginger in the mid-scale segment.
Chhatwal said scale remains critical in segments such as mid-market hotels and homestays, where IHCL is targeting hundreds of properties over the next decade.
Diversification and Global Expansion Reduce Volatility
A key pillar of IHCL's strategy is diversification across brands, geographies, and revenue streams to reduce earnings volatility. Its flagship Taj brand continues to anchor growth, while international expansion is gaining pace with new openings planned in Frankfurt and a luxury safari lodge in South Africa's Kruger National Park.
The company has also expanded high-margin adjacencies such as private membership clubs, which help improve profitability and margin stability.
IHCL's portfolio has expanded significantly, growing from about 150 hotels seven years ago to around 600 currently, with consolidated revenue on track to move toward Rs 10,000 crore.
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