New Delhi: Tata Group’s hotel company, Indian Hotels Co Ltd, said on Friday it was on track to achieve its target portfolio of a total of 300 hotels by 2025.
The company currently has 242 hotels, including 61 under development, in total across brands such as the Taj, SeleQtions, Vivanta and Ginger with a total of 29,000 rooms.
As part of its “Ahvaan 2025” strategy, IHCL said it will expand its footprint in relatively untapped destinations such as northeast India, in addition to key global markets that have significant customer crossover with India, through strategic partnerships.
Over the past 24 months, IHCL has grown rapidly with two hotel signings every month, the company’s managing director and CEO, Puneet Chhatwal, said in a statement.
“IHCL is well positioned to achieve our target of a portfolio of 300 hotels by 2025, guided by an asset-light model to achieve profitable growth,” he added.
As part of the expansion, the company’s flagship Taj will have 100 hotels by 2025, up from 89 currently.
Similarly, the Vivanta and SeleQtions brands will grow to a portfolio of 75 hotels from the current 64. Another brand, Ginger, will see the number rise to 125 hotels over the period from 89 currently, a company official said.
IHCL is also expanding its “amã Stays & Trails” branded homestay portfolio to 500 properties by 2025, from the current 98 bungalows.
In terms of geography, an IHCL spokesperson said, “We will continue to build our presence in major metros, financial and state capitals, major Tier II cities, shopping malls and popular tourist routes… We will continue also our heritage of new pioneers. destinations by expanding our footprint in relatively untapped destinations such as the North East.”
In addition, IHCL will also seek to strengthen its presence in “key global markets that have substantial customer crossover with India, through strategic partnerships.”
“This includes destinations across the Indian subcontinent, in cities that are on popular travel routes, particularly among the Indian diaspora. The Middle East will continue to be an important focal point for us – we have a fourth Taj hotel in Dubai and one in Makkah is currently in the works,” the spokesperson said.
As part of its “Ahvaan 2025” strategy announced earlier this year in May, IHCL said it would target a portfolio of 300 hotels, have a 33% EBITDA margin with a 35% contribution from New Business and Management Fee EBITDA by FY 2025-26.
As part of the program, the hotel company said it is also focusing on restructuring its portfolio to achieve a 50:50 mix between its owned/leased and managed hotels, which currently stands at 54:46. ‘there will be a combination of management contracts for Taj, SeleQtions and Vivanta hotels, the expansion of the Ginger brand will be primarily through operating leases, the company added.