IHCL Reports 27% Increase in Net Profit, Unveils ₹3,500 Crore Capex Plan for Next Five Years

Indian Hotels Company Limited (IHCL) announced plans to invest ₹3,500 crore over the next five years to upgrade key assets, expand its digital capabilities, and pursue select new projects. The company disclosed these ambitious plans on Wednesday while announcing its fourth-quarter financial results for FY24.

IHCL intends to introduce upscale hotels under its re-imagined Gateway brand and anticipates double-digit revenue growth in FY25. Consolidated net profit for Q4 FY24 increased by 27% year-on-year, reaching ₹418 crore. This growth was driven by an 18% increase in revenue, which stood at ₹1,951 crore. The company's earnings before interest, taxes, depreciation, and amortisation (EBITDA) totaled ₹706 crore, yielding a margin of 36.2%.

IHCL's Managing Director and CEO, Puneet Chhatwal, stated that the company expects to deliver double-digit revenue growth in the coming year, supported by 30% growth from new businesses and the opening of 25 new hotels. IHCL's re-imagined Gateway brand will feature full-service hotel offerings in the upscale segment, targeting growth opportunities in metro and Tier-II and Tier-III cities. The roll-out will begin with 15 hotels in locations such as Bekal and Nashik this quarter, followed by Bengaluru, Thane, and Jaipur. By 2030, the brand plans to scale to a portfolio of 100 hotels.

Chhatwal also noted that IHCL has surpassed its targets under the Ahvaan 2025 plan well ahead of schedule, with a full-year consolidated EBITDA margin of 33.7%, a portfolio exceeding 300 hotels, and a cash position of ₹2,206 crore.

HBL