The Indian Hotels Company Limited (IHCL), the parent company of Taj Hotels, announced an expansion plan called the “Accelerate 2030 strategy”. The goal is to double its revenue to Rs. 15,000 crore by adding 700 hotels over the next five years, expecting management fees to surpass Rs 1,000 crore by 2030. New business areas are projected to grow at over 30% annually.
Puneet Chhatwal, IHCL’s Managing Director and CEO, mentioned that the company has exceeded its expectations by reaching a total of 350 hotels, with over 200 currently in operation, and has enjoyed ten consecutive quarters of strong financial results. He pointed out that a strong balance sheet helps support growth, along with favorable conditions in the market like India’s expected GDP growth of over 6.5%, ongoing government investment in infrastructure, high demand for hotels, and increasing consumer wealth.
Looking ahead, Chhatwal identified several key factors that will boost the hospitality industry. He noted that as India aspires to be among the top three economies in the world, it will experience more long weekends and leisure trips, leading to increased business travel.
Moreover, as the country grows wealthier, average incomes will rise. Chhatwal believes that with India’s economy moving up the ranks, it will become a significant destination for international tourists, which is currently far from its full potential, attracting only 1 crore foreign visitors, half of whom are Indian nationals. He believes these trends will fuel growth, improve rates, and increase profits in the sector.
Chhatwal noted that when the Taj and other companies first started, they operated hotels themselves. Now, institutional investors are eager to enter the market, which could lead to substantial growth in hospitality.
Chhatwal announced that IHCL will begin managing The Claridges hotel, an iconic property in Lutyens New Delhi, from April under a new operating agreement.
IHCL has reached a record agreement to open 42 hotels, leading to a total of 350 hotels, fulfilling its market goal of opening two hotels a month with 14 new openings till date. In addition, IHCL has entered into an agreement to acquire majority shareholding in ‘Tree of Life’ brand holding company, expanding its brandscape with a boutique leisure offering.