The Indian Hotels Company Limited (IHCL) today held its third Capital Market Day. The company shared key updates on its five-year business strategy, Aspiration 2022.
“This year continues the transformation of IHCL from a hotel company to a multi-brand hospitality eco-system player. We have executed on our Aspiration 2022 vision and driven strong operational performance with significant improvement across all key financial metrics like profitability, cash-flows, EBITDA margins and debt ratios in the current fiscal. Our re-imagined brandscape with a unique experience and a sustainable value proposition for each hotel brand is resonating with our customers and partners. We signed 50 new hotels in the last 2 years and this growth momentum has helped us reach a portfolio milestone of 200 hotels. We will continue to focus on capturing emerging opportunities across the hospitality industry landscape, thereby creating significant value for all our stakeholders,” Puneet Chhatwal, Managing Director and Chief Executive Officer, IHCL said.
IHCL continues to make significant progress in respect to the key pillars of the Aspiration 2022 strategy: Re-engineer, Re-structure and Re-imagine.
IHCL re-engineered its financial performance with a continued focus on the topline growth, profitability and margin expansion. It posted a consistent margin expansion for eight consecutive quarters. The consolidated EBITDA margin for the first nine months of FY 2019-20 is 24.4 per cent. The company opened 12 hotels in 11 months at the rate of over 1 hotel a month in FY 2019-20. Meanwhile, Ginger reaches a milestone of 50 hotels in operation with 18 in the pipeline. IHLC is also set to build 371-room Ginger flagship hotel in Santacruz, Mumbai as well as to open an integrated hotel and conference facility in March in Goa with over 500 rooms and 60,000 sq. ft. of conference space with the new Taj Hotel & Convention Centre, co-located with Cidade de Goa, IHCL SeleQtions
On Re-structuring, IHCL continued on its trajectory to re-structure for scale and reached a milestone 200 hotels with an inventory of 25,000 rooms spread over 100 locations. This includes 42 hotels under development. The company also harnessed the diverse brandscape to drive asset light growth through management contracts. 43 per cent of its portfolio is now management contracts which was 32 per cent two years ago. According to the company, the FY2020 will see the opening of more than one hotel a month and some of the locations include Delhi, Trivandrum, Darjeeling, Shillong, Gangtok, Ahmedabad, Navi Mumbai, Kalinganagar, Bhubaneswar and Wayanad. IHCL is working on becoming Future Ready by developing talent with new skills to take on opportunities generated from scaling the portfolio
On Re-imagining : The re-imagined brandscape enabled the company to transform from a hotels business to a hospitality eco-system. It unlocked value by rolling out a new brand of named collection of hotels – SeleQtions. Repositioned Ginger in the lean luxe segment with 20 per cent of its portfolio reflecting the new design and service philosophy. Re-imagined Vivanta prototype will be launched in Bengaluru next month. amã Stays & Trails expanded its footprint, and now has a collection of 20 heritage properties in unique and experiential locations across India