The Indian Hotels Co. Ltd. (IHCL), one of the biggest hospitality companies in India, reported a strong performance for the full year 2023-24 and marked eight consecutive years of record performance, driven by key operational factors.
In Q4 2024, the hotel company’s net profit soared 27.43% YOY to stand at Rs. 418 crore ($50.11 million), while revenue jumped 18% YOY to Rs 1,951 crore ($233.9 million).
For the full financial year, net profit soared 26% YOY to Rs. 1,259 crore ($150.9 million), while revenue increased 17% to Rs. 6,952 crore ($833.5 million).
Demand buoyancy in the international portfolio helped the company achieve occupancy of 67%, which increased 700 basis points and resulting in RevPAR climbing 9% in the past financial year.
Through the year, IHCL signed 53 hotels and opened 34 properties, which includes a strategic partnership for 14 resorts under the Tree of Life brand. In the fourth quarter alone, the company opened six hotels, including three under its SeleQtions brand, two under Ginger and a Vivanta in Nepal.
The new signings and openings have led to IHCL’s total portfolio comprising 310 hotels, including 92 under development across 13 countries.
The impressive performance was a result of double-digit revenue growth in same store hotels, incremental revenue from not like-for-like hotels and scaling of new businesses, IHCL Managing Director and CEO Puneet Chhatwal said.
New business now represents 12.1%, up from 10.7% in the previous year.
IHCL started a five-year deployment plan from FY2023 to FY2027 totaling Rs. 3,500 crore ($419.6 million) to upgrade its key assets, build capabilities and select new projects.
In FY2025, IHCL expects to continue its double-digit revenue growth with new businesses at 30% and opening of 25 hotels. The company is preparing to reintroduce Gateway, its full-service, upscale brand, which will tap into the growth potential of emerging micro markets in metros and tier II and tier III cities.
Gateway will start rolling out with 15 hotels, beginning from this quarter, and plans to scale to 100 hotels by portfolio, Chhatwal said.