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“IHCL is well poised to reach 700 hotels by 2030!” – Puneet Chhatwal

IHCL reports record Q3 and nine-month financial performance driven by strong revenue and strategic growth initiatives

Puneet Chhatwal, Managing Director and Chief Executive Officer, IHCL
Puneet Chhatwal, Managing Director and Chief Executive Officer, IHCL

The Indian Hotels Company Limited (IHCL) reported its consolidated financials for the third quarter and nine months ending December 31st, 2024.

CONSOLIDATED FINANCIAL RESULTS FOR Q3 AND NINE MONTHS ENDED 31ST DECEMBER 2024

Q3 YoY PERFORMANCE
Revenue ↑ 29%EBITDA ↑ 32%EBITDA % ↑ 0.8pp   PAT ↑ 29%
₹ 2,592 Cr₹ 1,020 Cr39.4 %      ₹ 582 Cr
NINE MONTHS ENDED DECEMBER 31ST YoY PERFORMANCE
Revenue ↑ 22%EBITDA ↑27%EBITDA % ↑ 1.6 pp   PAT ↑ 65%
₹ 6,078 Cr₹ 2,081 Cr34.2%     ₹ 1,385 Cr*

Includes one-time exceptional gain of INR 307 Cr in Q2 on account of Taj SATS consolidation.

Puneet Chhatwal, Managing Director & CEO, IHCL, said, “Q3 marks 11 consecutive quarters of record performance with the hotel segment reporting a strong revenue growth of 16% resulting in EBITDA margin of 40.9%. The revenue performance was driven by 40% increase in New Businesses, not like for like growth and double-digit growth in same store hotels led by 20% growth in the US portfolio. With the consolidation of air and institutional catering business, Revenue and PAT grew by 29% at INR 2,592 crores and INR 582 crores respectively. In Q4 and the subsequent quarters of the next financial year, the sector will continue to witness demand buoyancy on account of large-scale regional events, weddings and sustained transient travel.”  

He added, “In line with Accelerate 2030, IHCL sets a new growth benchmark with 55 signings and 20 openings till date this fiscal and 85% of these signings are capital light. With a portfolio of 360 hotels and an industry leading pipeline of 123 hotels, IHCL at this pace of growth is well poised to reach 700 hotels by 2030.”

KEY OPENINGS IN Q3

Q3 HIGHLIGHTS

DELIVERS RECORD FINANCIAL PERFORMANCE 
Domestic same store hotels delivered a 13% Consolidated RevPAR growth with a premium of 78% vs industry at enterprise level. International Consolidated portfolio reported an occupancy of 78%, up 400 basis points, resulting in a RevPAR growth of 9% led by 25% RevPAR growth in The Pierre, New York. Management Fee income grew by 32% to INR 177 crores on the back of not like for like growth.
NEW & REIMAGINED BUSINESSSES
The Air & Institutional Catering business segment (Taj SATS) clocked a revenue of INR 275 Crore, 18% growth over the previous year and EBITDA margin at 26.7%.New Businesses vertical comprising of Ginger, Qmin and amã Stays & Trails reported an Enterprise revenue of INR 218 crores, a growth of 38% and Consolidated revenue of INR 164 crores, a growth of 40%.Enterprise Revenue of Ginger stood at INR 186 Crore with a strong EBITDAR margin at 46% and a portfolio of 102 hotels with 72 in operations. Qmin has grown to 59 outlets and amã Stays & Trails has reached a milestone of 250 bungalows in its portfolio with 119 in operations.   
EXPANSION MOMENTUM CONTINUES
In Q3, IHCL signed 20 hotels which included 3 Taj hotels in destinations like Chail and Ayodhya, The Claridges, New Delhi, SeleQtions hotels in Diu and Mandvi, a Vivanta in Surat, Tree of Life resorts in Udaipur and Naldehra, 6 under the newly reimagined Gateway and 5 Ginger hotels. IHCL opened 8 new hotels in Q3, taking the total operating hotels to 237 across brands with a Taj in Puri and Cochin International Airport, SeleQtions in Thimpu, Goa and Kumbhalgarh, a Tree of Life resort in Bandhavgarh and 2 Ginger hotels in Diu and Goa.
ESG+ FRAMEWORK OF PAATHYA
IHCL now uses 37% energy from renewable sources and has installed 336 EV charging stations. Continuing its journey of eliminating single use plastic, IHCL installed 61 bottling plants and achieved 48% + recycling of water used. Bridging the employability gap in the industry, IHCL has partnered for 46 skilling centers.

Ankur Dalwani, Executive Vice President and Chief Financial Officer, IHCL, said, “With continued demand buoyancy in the domestic market IHCL Standalone reported a revenue of INR 1,517 crores, an increase of 15% over the previous year, EBITDA margin 47.8%, an expansion 240 basis points and a 23% growth in PAT at INR 469 crores. Led by a broad-based business performance, IHCL Consolidated reported EBITDA margin of 39.4% an expansion of 80 bps resulting in a strong gross cash position as on 31st December of INR 2,823 crores.”  

He added, “The company in January has acquired 55% shareholding in Rajscape Hotels, the brand holding company of Tree of Life and will form a part of IHCL Consolidated from Q4.”

ANNEXURE I

IHCL AWARDS & ACCOLADES FY25


Brand Finance’s ‘Hotels 50 2024’ Annual Report – Taj ranked world’s strongest hotel brand for the third time.
Brand Finance’s coveted ‘India 100 2024’ Report – Taj recognized as India’s strongest brand across sectors for the fourth time.
CNBC TV18 – ICICI Lombard India Risk Management Awards 2024 – Master of Risk in Brand & Social Media Risk Management.
Puneet Chhatwal, Managing Director & CEO, IHCL – Awarded Hall of Fame at the 39th IATO Annual Convention.
Golden Peacock Award – For excellence in governance in 2024.
Taj InnerCircle – Awarded best hotel loyalty program at Travel + Leisure India’s Best Awards 2024.
TRAVEL + LEISURE READERS’ – WORLD’S BEST AWARDS 2024
25 Best Hotel Brands – Taj
100 Best Hotels in the World
Taj Exotica Resort & Spa, Goa
Taj Lands End, Mumbai
Taj Lake Palace, Udaipur
Best Asia Hotels
Taj Lands End
Taj Mahal, New Delhi
Taj Palace, New Delhi
Best Asia Resorts
Taj Exotica Resort & Spa, Goa
10 Best India City Hotels
Taj Lands End, Mumbai
Taj Mahal, New Delhi
Taj Palace, New Delhi
Taj West End, Bengaluru
The Taj Mahal Palace, Mumbai
Best India Resorts
Taj Exotica Resort & Spa, Goa
Taj Lake Palace, Udaipur
Rambagh Palace, Jaipur
Umaid Bhawan Palace, Jodhpur
TRAVEL + LEISURE READERS’ 20 FAVOURITE CITY HOTELS IN ASIA OF 2024
Taj Lands End, Mumbai
Taj Mahal, New Delhi
Taj Palace, New Delhi
ROBB REPORT 50 GREATEST LUXURY HOTELS 2024Taj Lake Palace, Udaipur
SOUTH ASIAN TRAVEL AWARDSLeading Luxury Hotel & Leading F&B Hotel – Taj Palace, New Delhi
Leading Restaurant in a Hotel – Loya at Taj Palace, New Delhi
Leading Wedding Hotel – Rambagh Palace
Leading Palace Hotel & Leading Heritage Hotel – Taj Lake Palace
Leading Family Resort – Devi Ratn
Leading Business Hotel – Taj Lands End
Leading Airport Hotel – Vivanta Colombo
CNT UK READERS’ CHOICE AWARDS 2024: THE TOP HOTELS IN INDIARambagh Palace, Jaipur
Taj Lake Palace, Udaipur
Umaid Bhavan Palace, Jodhpur
CNT US READERS’ CHOICE AWARDS 2024: TOP 20 HOTELS IN INDIAUmaid Bhavan Palace, Jodhpur
Taj Mahal Palace, Mumbai
Taj Lake Palace, Udaipur
Taj Mahal Hotel, New Delhi
Taj Palace, New Delhi
Taj Lands End, Mumbai
Rambagh Palace, Jaipur
CNT US READERS’ CHOICE AWARDS 2024: TOP 15 RESORTS IN ASIATaj Sawai Madhopur Lodge, Ranthambore
CNT READERS’ CHOICE AWARDS 2024: BEST RESORT IN THE MIDDLE EASTTAJ PALM, DUBAI
TATLER BEST 100 LIST – ASIATaj Lake Palace
Umaid Bhawan Palace
GALLIVANTER’S GUIDE: HOTEL OF THE YEAR 2024Umaid Bhawan Palace, Jodhpur