Dedicated locality research platform
Dedicated locality research platform
Enter your email address and you will receive
a link to reset your password
Indian Hotels Company Limited (IHCL), which is supported by the Tata Group, announced a historic annual profit amounting to Rs 1,053 crore in the financial year 2023, compared to a loss of Rs 265 crore in the previous year. IHCL saw a 90 percent increase in revenue from operations, totalling to Rs 5,810 crore in the same period. In the fourth quarter of the fiscal year 22-23, the company recorded a revenue of Rs 1,625.4 crore, marking an impressive 86 percent growth from the previous year. Additionally, the profit for the same period was Rs 339 crore, showcasing a significant increase from the Rs 72 crore recorded in the fourth quarter of the fiscal year 21-22.
According to Puneet Chhatwal, Managing Director and CEO of the company, the chain's profit after tax surpassed the combined profits of its three most successful financial years. IHCL had a record year with highest-ever consolidated revenue, industry-leading EBITDA margin, and over Rs1,000 crore profit after tax - a historic first. Thanks to consistently strong demand for its services over four consecutive quarters, IHCL was able to demonstrate its market leadership in revenue per available room (RevPAR) across all of its key markets and brands. Factors contributing to this success include demand surpassing supply, robust portfolio growth, effective asset management, hotel upgrades, and rigorous cost control.
IHCL now has over 260 hotels, including 36 new ones signed at a rate of 3 per month, and 16 opening every 3 weeks. Their presence spans 31 Indian states and Union Territories. Chhatwal claimed that they achieved a perfect 50/50 balance between owned/leased and managed hotels.
Giridhar Sanjeevi, IHCL's CFO and EVP, announced positive profits in domestic operations for all group companies due to strong demand in various markets and segments. The record Ebitda margin of 32.7% was achieved through same store performance, new businesses, and asset-light growth.
Hotelivate, a hospitality consultancy, reported in its latest Trends & Opportunities report that as of July 2022, IHCL held the second-largest position in the country with roughly 18,000 rooms. Marriott International holds the top position with around 22,000 rooms. Marriott and IHCL are the top two hotel brands in India based on available inventory, with Marriott at 14.26 percent and IHCL at 11.57 percent. IHCL has more hotels in the country than its rival Marriott International.
IHCL, promoted by Tata Sons private Limited, is engaged in owning, operating and managing hotels, palaces and resorts since 1902. In 1903, the company opened its first hotel, The Taj Mahal Palace & Tower, Mumbai. After an initial public offering in the 1970s, they expanded geographically and developed new tourist destinations, becoming a top Indian hotel chain. Since the 1970s, the Taj Group launched key tourist destinations in India with the government's support. IHCL has a portfolio of 247 hotels including 65 under development globally across 4 continents, 11 countries, and in over 100 locations.
This story was first published in ET Realty & Mint
Propscience is India’s dedicated property news portal. We cover the latest events, news, trends, deals, new launches and more.
All our services and tools are completely free of cost and available 24X7!
