The Indian Hotels Company today at the third Capital Market Day shared updates on its five-year business strategy, Aspiration 2022.
The company reported EBITDA margins at 24.4 percent for nine months of FY 2019-20; consistent margin expansion for eight consecutive quarters and reached a milestone of 200 hotels with an inventory of 25,000 rooms in over 100 locations.
Speaking at the event, Puneet Chhatwal, MD & CEO, IHCL, said, “This year continues the transformation of IHCL from a hotel company to a multi-brand hospitality eco-system player. Our re-imagined brandscape with a unique experience and a sustainable value proposition for each hotel brand is resonating with our customers & 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. We will work with other Tata companies like Tata Power to reduce wastage and also costs. We will sell more non-core assets and simplifying the holding structure. The average growth rate of the redefined Ginger is 25 percent in just one year’s time.”
Vouching on the key pillars of the Aspiration 2022 strategy – Re-engineer, Re-structure, Re-imagine – the company believes to drive asset-light growth through management contracts growing to 43 percent now compared to 32 percent two years ago. The company is re-imagining its F&B offerings with new innovations including the recent tie-up with AB InBev, for an industry-first on-site chain of micro-breweries. It announced a partnership with a globally acclaimed Italian restaurant chain, Paper Moon, and will open the first Paper Moon in India at Taj Aguada Resort & Spa. It also took steps to ensure a healthier balance sheet with debt reduction, asset management initiatives, on sale of non-core assets, as well as higher cash flows. The current net debt to EBITDA ratio is 1.76 down from 2.11 as of FY 2018-19.
FY2020 will see the opening of more than one hotel a month and some of the locations include Delhi, Thiruvananthapuram, Darjeeling, Shillong, Gangtok, Ahmedabad, Navi Mumbai, Kalinganagar, Bhubaneswar and Wayanad.