Indian Hotels Company: Hotels have been at the forefront of hospitality as a means of welcoming guests and hosting foreign officials so that they can embrace the cultures of their respective countries. The main theme is to provide luxury for the elite. They are the economic drivers as well. As the demand for travel and tourism grows, the hospitality industry thrives.

There is economic growth and an increase in disposable income, which people use to spend on tourism and, indirectly, hotels. With the growing population, this trend is likely to continue in the coming years. In this article, we will look at India Hotels, a company that is at the forefront of growth in the hotel and hospitality industries. 

Company Overview Of Indian Hotels Company

Indian Hotels Company was founded in 1902, under the helm of Tata Group. They offer luxury hospitality services and boast a diverse portfolio of brands and products. Taj, Vivanta, Seleqtions, Ginger, Ama Stays & Trails, and Tree of Life resorts & hotels are among their most recognizable brands.

The company has been able to expand its folio, especially in FY24 when it entered Frankfurt, Dhaka, Bhutan, and Nepal. In India, they expanded into newer destinations like airport hotels, and large format hotels in prime locations like New Delhi, Kochi, and Goa.   

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Industry Overview

The Hospitality Industry in India Market is expected to be worth USD 247.31 billion in 2024, rising to USD 475.37 billion by 2029, with a CAGR of 13.96% during the forecast period (2024-2029). India’s status as a top global destination for both leisure and business travellers has benefited the country’s hospitality industry. 

India’s appeal as a worldwide vacation destination has been boosted by its geopolitical stability, world-class infrastructure, and dedication to hosting international events. As a result, these elements contribute to the growth of the tourism business, which in turn keeps the hospitality industry afloat.

Domestic tourism in India has demonstrated extraordinary resilience and tenacity, with Indian citizens increasingly preferring staycations. This preference for staycations is motivated by a variety of considerations, including ease, safety, and the opportunity to explore hidden gems in India. 

Key Performance Indicators & their Segments

For investors, looking at some parameters is critical. Occupancy Rates in FY24 stood at around 80%. It indicates that the company’s room occupancy rate was around 80%, with the rooms rented for the year.  Their operational inventory is 60% capital-light, while the remaining 40% is capital-intensive. That indicates an improvement in hotel efficiency. 

Across four continents and approximately 13 countries, with a presence in 150 locations. Indian Hotels Company has 220 operational hotels with 91 in the pipeline. The total number of keys was 24,322, which were operational. As of April 30, 2024, there are 12,871 projects in the pipeline for the coming years.

IHCL has a 75.40% employee retention rate and a 24.60% attrition rate. The company earns Rs. 32.12 lakh per employee. The majority of the revenues come from Hotel Services. The revenues are distributed geographically, with India earning approximately 81.02%, the United States earning 9.76%, the United Kingdom earning 8.02%, and other overseas locations accounting for 1.18% in FY24.

Financials Of Indian Hotels Company

In FY24, the company’s operating revenue was Rs. 6,768.75 crore, up from Rs. 5,809.91 crore the previous year. Net profits increased by 26.34% YoY to Rs. 1,330.24 crore from Rs. 1,052.83 crore. Indian Hotels Company’s payroll percentage of revenue was around 26% in FY24, up from 26.60% in FY23. The raw material costs as a percentage of F&B revenue in FY24 were around 21.80%, compared to 22.20% in FY23.

Particulars/ Financial Year2019-202020-212021-222022-232023-24
Revenue (Cr.)₹4,463₹1,575₹3,056₹5,810₹6,769
Net Profit (Cr.)₹351-₹694-₹222₹971₹1,330
RoE (%)6.31%0.00%0.00%12.81%13.69%
RoCE (%)7.47%0.00%0.00%13.63%15.92%


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Future Plans Of Indian Hotels Company

Indian Hotels Company expects consistent double-digit top-line growth, with sustained margins and continued portfolio growth. They plan to open 25 hotels in FY25. IHCL’s new businesses are expected to grow by more than 30% next fiscal year. Their contribution to consolidated revenue is expected to increase from 12% currently to 20% shortly, driving margin expansion.

They are launching a reimagined upscale Gateway brand, starting with 15 hotels and scaling to 100 hotels by 2030. The first 15 Gateway hotels announced are all asset-light. The hospitality industry’s upcycle is expected to be long and sustained. According to Horwath HTL, they predict annual demand growth of over 10% for the next 3-4 years while supply lags demand.

Over the next 18 months, Indian Hotels Company plans to make significant IT investments, including new brand websites, an ERP system upgrade, and advanced analytics. It is expected to yield productivity gains and cost savings over the next 2–4 years. IHCL is working on 1-2 potential large greenfield leisure projects on land parcels it already owns, which they hope to announce in the next quarter. It would be included in the portfolio of “big box” hotels.

Key Metrics Of Indian Hotels Company

Here are some of the key metrics of Indian Hotels Company

CMP₹576.90Market Cap (Cr.)₹83,256.00
Stock P/E (TTM)67EPS (TTM)₹8.73
RoE (%)13.69%RoCE (%)15.92%
Promoter Holdings (%)38.12%FII Holdings (%)24.47%
Debt to Equity Ratio (TTM)0.29Interest Coverage Ratio8.56
Current Ratio (TTM)1.77Net Profit Margin (%)17.75%


As we near the end of the article, Indian hotels have improved their financial performance. Their revenues increased, as did their profits. Indian Hotels Company’s portfolio of iconic brands provides a competitive advantage, which is sustained through reputation and service. Over time, increased tourism can drive growth in the hotel industry.

The increase in occupancy rates would also be a positive sign and signifies the increase in demand. What do you think about the India Hotels Company’s potential? Let us know your views in the comments section below.

Written by Santhosh

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