IHCL Plans to Expand to 700 Hotels by FY27, CEO Puneet Chhatwal Confirms

Indian Hotels Company Ltd (IHCL), a flagship hotel chain of the Tata Group and India's largest hospitality firm by market value, is on course to reach a portfolio of 700 hotels a full three years ahead of its original 2030 target. Puneet Chhatwal, the company's managing director and CEO, revealed this milestone is expected to be achieved within the financial year 2026-27.

During a recent discussion following IHCL's second-quarter financial results for FY27, Chhatwal mentioned that the management team is preparing to update its development roadmap, Accelerate 2030, with revised targets slated for release by mid-November. The accelerated timeline reflects IHCL’s rapid pace of growth and signals plans to set more ambitious expansion goals in the near future.

The company’s latest quarterly report highlighted a 23 percent rise in net profit, reaching ₹349 crore, alongside a 21 percent increase in revenue to ₹2,566 crore compared to the same period last year. IHCL has already signed agreements for 47 new hotels during FY27 up to September, increasing its portfolio to 670 properties. This marks a significant jump from its initial plan in 2024 to reach 700 hotels by 2030.

Chhatwal also shared that the firm has upgraded its consolidated revenue growth forecast for FY27 to a range of 15 to 17 percent, up from the earlier guidance of 12 to 14 percent. The pipeline includes approximately 34,800 new rooms, underscoring IHCL’s strong development momentum.

Currently, IHCL operates 390 hotels and expects to surpass 400 properties by November or, at the latest, before the end of the third quarter of FY27. The company aims to open 30 new hotels in the second half of the fiscal year, targeting a total of 50 openings across FY27. This expansion is driven by both organic growth and acquisitions.

With over ₹4,369 crore in free cash flow available, IHCL plans to continue acquiring properties and investing in upgrades, greenfield developments, and asset management opportunities. This capital allocation comes after a record ₹500 crore capital expenditure in the first half of FY27, which already exceeded the prior year's full-year spending.

Chhatwal noted that IHCL remains optimistic about the quarters ahead, buoyed by strong demand from both social gatherings and the meetings, incentives, conferences, and exhibitions (MICE) segment. The company also witnessed a boost in activity during the early festival season starting in October.

One significant strategic move in the quarter was IHCL’s board approval of an all-stock merger with its associate company, Oriental Hotels Ltd (OHL). This merger, expected to be finalized by April, will simplify the group’s holding structure and unlock new asset management and revenue growth opportunities.

The Ginger brand, which caters to the mid-segment hotel market, now represents the largest share of IHCL’s portfolio by number of hotels, having surpassed 100 properties last quarter. Chhatwal emphasized the group’s vision for Ginger to have a presence in every district headquarters across India, with major metropolitan areas like Mumbai and Delhi hosting multiple Ginger hotels.

The Taj brand continues to serve as IHCL’s premium offering, enhancing the group's overall value proposition in the luxury segment. The company also reported a 25 percent increase in revenue per available room for domestic same-store hotels, along with a 25 percent increase in management fees driven by new hotel openings.

Other segments such as select service businesses—including Ginger, Qmin, Ama, and Tree of Life—also experienced 25 percent revenue growth, supported by recent acquisitions like Brij and Atmantan.

On the stock market, IHCL shares closed at ₹753.00 on the National Stock Exchange, reflecting a modest decrease of 0.92 percent on the day of the earnings announcement.

IHCL’s ambitious expansion and strategic initiatives highlight the company’s commitment to consolidating its leadership in India’s hospitality sector. As the tourism and business travel markets continue to recover and grow post-pandemic, IHCL’s focus on diversifying its portfolio and enhancing customer experiences positions it for sustained growth in the coming years.