Indian Hotels Company (IHCL), the hospitality giant behind the iconic Taj brand, has reaffirmed its strong market position and growth plans despite facing operational headwinds. The company reported an impressive 11.00% year-on-year growth in Revenue Per Available Room (RevPAR), showcasing its resilience in the face of flight disruptions and geopolitical tensions.

Strong Brand Performance

CEO Puneet Chhatwal attributed the company's robust performance to the strength of the Taj brand, which continues to command a significant premium in the market. Across various locations, the Taj brand maintains a RevPAR premium exceeding 50.00%, underlining its strong appeal to discerning travelers and its ability to generate higher returns compared to competitors.

Growth Outlook and Expansion Plans

Despite the challenges, IHCL maintains an optimistic outlook, reiterating its 35.00% growth guidance. This confidence is underpinned by the company's new business growth, which stands at an impressive 27.00% with high margins. The expansion strategy remains aggressive, with plans to open between 20 to 25 new hotels from September to March, bringing the total new openings for the full year to 30-36 properties.

International Market Recovery

IHCL's international properties are showing signs of recovery, particularly in key markets such as San Francisco and London. The London market has been particularly strong, benefiting from increased activity during the Wimbledon season. To capitalize on this momentum, the company is investing 22 million pounds in renovations for its London properties, aiming to enhance its offerings and maintain its competitive edge.

Long-term Vision and Asset-light Strategy

Looking ahead, IHCL has set an ambitious target of reaching 700 hotels by 2030, with at least 500 of these properties being operational. The company's growth strategy focuses on an asset-light model, leveraging brands such as Ginger, Gateway, and Tree of Life to expand its portfolio without heavy capital investments.

TajSATS: A Growing Airline Catering Business

The company's airline catering arm, TajSATS, has emerged as a significant contributor to growth. With a 21.00% annual growth rate and a 20.00% growth guidance, TajSATS has solidified its position in the market, commanding over 50.00% market share of in-flight meals served in India.

Conclusion

IHCL's performance and strategic initiatives demonstrate its ability to navigate challenges while pursuing ambitious growth targets. The company's focus on brand strength, international market recovery, and diversification into high-growth segments like airline catering positions it well for future success in the dynamic hospitality industry.

Indian Hotels Company Limited (IHCL), India's largest hospitality company, has announced a significant long-term capital expenditure plan and reported robust financial results for the first quarter of fiscal year 2025-26.

Ambitious Expansion Plans

IHCL has unveiled a substantial capital expenditure plan of ₹5,000 crore spread over the next 4-5 years. The company expects to invest ₹1,200 crore in the fiscal year 2025-26 alone. This strategic investment is part of IHCL's 'Accelerate 2030' initiative, which aims to expand the company's portfolio to 700 hotels by 2030.

Strong Q1 FY26 Performance

The company's financial results for Q1 FY26 demonstrate continued growth and resilience in the hospitality sector:

• Consolidated revenue from operations increased by 32% year-on-year to ₹2,041.00 crore
• EBITDA grew by 29% to ₹637.00 crore
• Profit after tax (PAT) rose by 19% to ₹296.00 crore

Segment-wise Performance

The hotel segment showed strong performance with a 14% revenue growth, while the air catering business demonstrated significant growth of 21%.

Expansion and New Openings

IHCL continues its aggressive expansion strategy:

• Signed 12 new hotels across various brands in Q1 FY26
• Opened 6 new properties, including a Taj in Alibaug and two SeleQtions resorts in Lakshadweep
• The company's portfolio now stands at over 390 hotels, including 143 in the pipeline

Future Outlook

Puneet Chhatwal, Managing Director & CEO of IHCL, commented on the results: "Q1 FY2026 marks the thirteenth consecutive quarter of record performance. In line with our guidance, the company reported a double-digit growth in consolidated revenue."

He added, "The hospitality sector, despite geopolitical headwinds, continues to show resilience and sustained growth."

IHCL anticipates over 10% growth in hotel revenue and a 20% increase in airline catering revenue for the current fiscal year. The company plans to open more than 30 new hotels in FY26, with growth expected to accelerate from September.

Key Developments

• Taj brand ranked as the World's Strongest Hotel Brand 2025 by Brand Finance-UK for the fourth time
• Taj also recognized as India's Strongest Brand across sectors for the fifth time
• IHCL maintains a healthy balance sheet with a gross cash balance of ₹3,073.00 crore as of June 30, 2025

As IHCL continues to execute its ambitious expansion plans and capitalize on the growing demand in the hospitality sector, the company appears well-positioned for sustained growth in the coming years.