The company posted revenues of Rs 2,592 crore for the quarter under review, up 29% year-on-year. For the nine months ended December 31, the chain reported revenues of Rs 6,078 crore, up 22% year-on-year. The chain posted a profit after tax of Rs 1,475.4 crore for the nine months ended December 31, up 65.4% year-on-year.
IHCL MD and CEO Puneet Chhatwal said in line with its new Accelerate 2030 strategy, IHCL has set a new ‘growth benchmark’ with 55 signings and 20 openings to date this fiscal and 85% of these signings are capital light.
“With a portfolio of 360 hotels and an industry-leading pipeline of 123 hotels, IHCL at this pace of growth is well poised to reach 700 hotels by 2030. This includes operational as well in pipeline hotels,” he added.
Also Read: Q3 numbers modest; RIL, IT Inc make presence felt
He also told ET that he is optimistic about kickstarting the Sea Rock project this calendar year. IHCL has received the intimation of disapproval (IOD) for Sea Rock. The IOD is a preliminary approval that developers must obtain before starting construction on a project, ensuring that the proposed building plans comply with safety, zoning, and structural regulations.“In quarter four and the subsequent quarters of the next financial year, the hospitality sector will continue to witness demand buoyancy on account of factors such as large-scale regional events, GDP growth, weddings, sustained transient travel and growth in leisure travel,” he said.Chhatwal said the third-quarter results mark eleven consecutive quarters of ‘record performance’ for the chain, with the hotel segment reporting strong revenue growth of 16%, resulting in an EBITDA margin of 40.9%. The revenue performance was driven by a 40% increase in new businesses, not like-for-like growth, and double-digit growth in same-store hotels, led by a 20% growth in the US portfolio.
The chain expects considerable growth through its Gateway, Tree of Life, and Ginger brands moving forward, said Chhatwal.
Meanwhile, global brokerage firm Jefferies maintained a “Buy” rating on IHCL with a target price of Rs 1,000. The company’s EBITDA performance was in line with expectations, slightly exceeding consensus estimates. Domestic RevPAR growth stood at 13% YoY, while international RevPAR grew by 9% YoY.
Jefferies’ guidance reflects sustained demand strength for Q4FY25 and FY26, driven by commercial events, regional weddings, and transient travel. Additionally, Taj Sats saw an 18% YoY increase in revenue, and new business revenue surged by 40% YoY.
In the third quarter, IHCL signed 20 hotels, including three Taj hotels in destinations like Chail and Ayodhya, The Claridges in New Delhi, SeleQtions hotels in Diu and Mandvi, a Vivanta in Surat, Tree of Life resorts in Udaipur and Naldehra, and six hotels under the newly reimagined Gateway brand, along with five Ginger hotels.
IHCL opened eight new hotels in the third quarter, bringing the total number of operating hotels to 237 across brands. These included a Taj hotel in Puri and at Cochin International Airport, SeleQtions hotels in Thimpu, Goa, and Kumbhalgarh, a Tree of Life resort in Bandhavgarh, and two Ginger hotels in Diu and Goa.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Article by:Source:
