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Aim To Build 300 Hotel Portfolio, Re-engineer Margin: IHCL

The company through Ahvaan intends to clock 33 percent EBITDA margin with 35 percent EBITDA share contribution from new businesses and management fees by FY 2025-26

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Indian Hotels Company Limited announced a plan, Ahvaan 2025, to re-engineer its margins, re-imagine its brandscape, and re-structure its portfolio. IHCL aims to build a portfolio of 300 hotels, and clock a 33 percent EBITDA margin with 35 percent EBITDA share contribution from new businesses and management fees by FY 2025-26.

Mr. Puneet Chhatwal, Managing Director and Chief Executive Officer, IHCL said, “Continuing its growth momentum, IHCL signed over 100 hotels and opened over 40 hotels in the past five years, making it the fastest-growing hospitality company in India. Ahvaan 2025 will accelerate IHCL’s profitable growth by scaling its diversified brand portfolio across its traditional and new businesses. Its iconic and strongest brand Taj, Paathya an industry-leading ESG+ framework, and a strong focus on digital will be the key enablers on this journey.”  

IHCL will re-engineer its margins, emphasising sustained revenue growth, cost optimisation, and operational excellence. It will further strengthen the balance sheet with a focus on free cash flows, and be a zero net debt company. Additionally, Ginger will scale to 125 hotels, ‘amã Stays & Trails’, a branded offering in the homestay market will be a portfolio of 500, and Qmin, IHCL’s culinary and home delivery platform will expand to 25 plus cities.

IHCL also aims to ee-structure its portfolio and achieve a 50:50 mix between its owned, leased, and managed hotels. It will look to stimulate growth by unlocking capital through strategic partnerships, monetization and simplification. Through a pipeline of 60 hotels IHCL has signed the highest number of new hotels in India over two consecutive years 2020 and 2021,  IHCL is present in 100 destinations across India. Taj, the iconic luxury brand is slated to grow to 100 hotels across the globe, while Vivanta and SeleQtions will scale to a portfolio of 75 hotels. 

With culture, customer and community at its core, Ahvaan 2025 will seek to maximize stakeholder value. 

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