Hospitalitynews India’s Post

Led by its iconic hospitality brand Taj, the Indian Hotels Company Limited (IHCL), India’s largest hospitality company, has announced its comprehensive strategy for 2030. Under the plan, IHCL will expand its brandscape, deliver industry- leading margins, double its connsolidated revenue to Rs 15,000 crore (with a 20% return on capital employed) and grow its portfolio to 700+ hotels (from present 350 hotels)while building on its world-renowned service ethos. India's largest hospitality company by market cap has earmarked Rs 5000 crore to achieve these goals in the next 5 years. Announcing the comprehensive strategy for 2030 in Mumbai, Puneet Chhatwal, Managing Director and Chief Executive Officer, IHCL said, “IHCL has surpassed its guidance by achieving a portfolio of 350 hotels, with over 200 hotels in operation and delivered ten consecutive quarters of record financial performance. This strong performance, coupled with a robust balance sheet, positions us well to accelerate our growth momentum. Enabling this vision are long term structural tail winds for the sector including India’s forecasted GDP growth of over 6.5%, government’s continued focus on infrastructure spend, hotel demand outpacing supply and the rising affluence of the consumer base.” #hospitality #Indianeconomy The Indian Hotels Company Limited (IHCL)

 The Indian Hotels Company Limited (IHCL) announced its comprehensive strategy for 2030.  Under the plan, IHCL will expand its brandscape, deliver industry-leading margins, double its consolidated revenue with a 20% return on capital employed and grow its portfolio to 700+ hotels while building on its world-renowned service ethos. Puneet Chhatwal, Managing Director and Chief Executive Officer, IHCL said, “IHCL has surpassed its guidance by achieving a portfolio of 350 hotels, with over 200 hotels in operation and delivered ten consecutive quarters of record financial performance. This strong performance, coupled with a robust balance sheet, positions us well to accelerate our growth momentum. Enabling this vision are long-term structural tailwinds for the sector including India’s forecasted GDP growth of over 6.5%, the government’s continued focus on infrastructure spend, hotel demand outpacing supply and the rising affluence of the consumer base.” He added, "IHCL will expand its brandscape with the launch of new brands, tapping the heterogeneous market landscape and taking its portfolio to 700 hotels by 2030. Doubling its Consolidated revenue to INR 15,000 crores, scaling new and re-imagined businesses to 25%+ share of revenue and continue to generate industry-leading margins and return on investment, while maintaining its renowned service excellence.” Under ‘Accelerate 2030’, the focus will be on driving top-line growth with 75% from traditional businesses and management fees and 25%+ from new and re-imagined businesses. Read more: https://lnkd.in/gC_jBV_C Taj Hotels #IHCL2030 #HospitalityExcellence #PuneetChhatwal #Accelerate2030

𝗜𝗻𝗱𝗶𝗮𝗻 𝗛𝗼𝘁𝗲𝗹𝘀 𝗖𝗼𝗺𝗽𝗮𝗻𝘆 𝗽𝗹𝗮𝗻𝘀 𝘁𝗼 𝗱𝗼𝘂𝗯𝗹𝗲 𝗶𝘁𝘀 𝗵𝗼𝘁𝗲𝗹 𝗽𝗼𝗿𝘁𝗳𝗼𝗹𝗶𝗼 𝘁𝗼 𝟳𝟬𝟬+ 𝗮𝗻𝗱 𝗿𝗲𝘃𝗲𝗻𝘂𝗲 𝘁𝗼 ₹ 𝟭𝟱𝟬 𝗕𝗶𝗹𝗹𝗶𝗼𝗻 𝗯𝘆 𝟮𝟬𝟯𝟬. ▪️ IHCL aims to double its portfolio to over 700 hotels and grow consolidated revenue to ₹150 billion by March 2030 under its ‘Accelerate 2030’ strategy. ▪️ The company will expand Taj, its luxury brand from 50 to 120 hotels and Ginger Hotels, a midscale brand from 46 to 100 hotels. ▪️ Expansion will be both organic and inorganic, driven by an asset-light model and prudent financial management. ▪️ IHCL plans to spend ₹50 billion on existing properties and new projects while maintaining a net cash-positive position. ▪️ From 350 hotels (28,000 keys) to 700 hotels (70,000 keys), with 90% of the portfolio in India and a focus on mid-scale and boutique offerings. The Indian Hotels Company Limited (IHCL)-CMP ₹ 754 𝗦𝗽𝗲𝗰𝗶𝗮𝗹 𝗧𝗵𝗮𝗻𝗸𝘀 James Heath Greenwich Partners 🔶For more updates, follow Sushant Kawade #Equityresearch #HospitalityInvestment #SectorInvesting #InvestmentStrategy #MarketAnalysis

The hospitality sector in India experienced muted growth in the fourth quarter of FY24, particularly in terms of room revenues. While the sector saw new hotel signings in tier-II and tier-III cities, operational growth remained limited. RevPAR (revenue per available room) showed an 11.4% year-on-year increase in Q4 FY24, but the quarter saw only a 5.5% sequential growth, down from the 100.8% growth seen in FY23 due to the pandemic recovery. Hotel signings and occupancy levels remained strong, with significant contributions from branded hotel conversions and new hotel openings in smaller cities.

Spaces like hotels, resorts and entertainment park were hot in FY23 with the businesses coming out of Covid. They were most affected during Covid and thus reported immense pace of sales growth in FY23 compared to the two previous Covid years. We see reasonable growth so far in FY24 over a high base in FY23. But the pace of growth has started to come down. The stocks have experienced PE expansions because the pace of growth was high. it may be hard to make money at that pace in future at a high PE when the pace of growth shall keep falling. Let's understand pace of growth with an example: Indian Hotels Sales Figures: Q3FY21: Rs 560 CR Q3FY22: Rs 1111 CR YOY Pace of growth: 100% Q3FY22: Rs 1111 CR Q3FY23: Rs 1686 CR YOY Pace of growth: 51% Q3FY23: Rs 1686 CR Q3FY24: Rs 1964 CR YOY Pace of growth: 15% Observe that the pace of sales growth is coming down from 100% to 15%. Stock prices are a slave to the change in pace of growth in a business. Businesses like Indian Hotels become a mediocre investment in the future with a 10-15% growth in sales trading at 70x FY24 earnings.

It is promising to observe that overall Feb 2024 report highlights a thriving trend in the Indian Hospitality market, displaying significant growth in key metrics such as rates, Average daily rates (ADRs), and Revenue per Available Room (RevPAR). Despite minor fluctuations in the occupancy, the market has indicated resilience with substantial increase in ADR and RevPAR across various city markets. The outstanding increases in hotel rates witnessed in Hyderabad and New Delhi, alongside Goa's capacity to achieve ADR growth despite marginal drops in occupancy, are particularly remarkable. Collectively these trends indicate a promising outlook for the Indian hospitality industry in the coming months. 

📖 *Weekend Knowledge Series* 🏨 Sector in Focus: Hotel Sector . The Indian hospitality sector was valued at approximately USD 32.10 billion, with projections indicating a CAGR of 10.5% from 2024 to 2030. This growth is expected to push the market size to an estimated USD 59.44 billion by 2030. . In mid 2024 alone, domestic hotel investment transactions reached $93 million. Leading #hoteloperators and brands like #IHCL and #ITC Hotels are vigorously expanding their footprints. For example, 19,440 new hotel rooms were signed, primarily in Tier-1 & Tier-2 cities, showing robust development activity. Government also target to boost this sector with multiple schemes and allocation in budget also. . Cover one strong fundamental Stocks with strong book, capex plan as well as strong target for FY25-27. . All information for learning purpose only. Girish Sodani Gunjan Bhalika . #Hospitalitysector #Hotels #Lemontree #Tajgvk #Capexplan #hotelsexpansion #roomnetwork #newrooms #toursim #IndianTourism #Fundamntalstock #stockinfocus #sectorinfocus #learnbeforeinvest #investing #investors #weekendseries #funds #learning #followus #hotelsector

India’s hospitality sector witnessed a promising start to FY24, with hotel transaction volumes in Q1 FY24 at US$78 million. In 2023, hotel investments in India reached US$401 million, which was nearly four times the volume witnessed in 2022. Last year also achieved a significant milestone of 22 hotel transactions, which is the largest number of assets traded in the last decade. In a conversation with The Economic Times, Jaideep Dang shared his perspective on how the diversified avenues of growth, such as expanding commercial office markets and rapid development of infrastructure throughout India, are playing a catalyst to the positive growth story of Indian hotels. #Hotels #Hospitality #IndiaRealEstate Anumeha Chaturvedi

📊 **Hotel Investment Surge in India!** 🏨✨ In the first half of 2024, hotel investments reached $93 million, with projections soaring to $413 million for the year—a 22% increase from 2023! Key highlights include: - 72% of transactions involved operational hotels. - Strong demand in Tier I markets, accounting for 78% of projected volumes. - 19,442 keys signed, primarily in Tier II and III cities. - A significant 6,071 keys added through new openings, with midscale hotels leading the way. JLL anticipates continued growth in the hospitality sector, driven by favorable macroeconomic factors and expanding commercial activity. Exciting times are ahead! 🌟 #HotelInvestment #HospitalityGrowth #JLLReport

Checking in: Leela Palaces set to tap markets with ₹5,000 crore IPO Schloss Bangalore Limited, operating as The Leela Palaces, Hotels, and Resorts, is a luxury hospitality company The Leela brand is among the world’s top three hospitality brands The company plans to raise a total of up to ₹5,000 crore via IPO - Fresh issue of up to ₹3,000 crore and an OFS of up to ₹2,000 crore The Indian hotel industry has ~3.4 million keys, with only 11% (375,000 keys) in the organized sector. Branded hotels make up about 45% of this organized inventory As of May 31, 2024, the portfolio includes hotels, spread across 10 destinations in India. Tap to read more: https://lnkd.in/g76Pmf9n #hotels #eih #indianhotels #IPO #leela #India #equity #stock #markets