Indian Hotels Company Ltd. (IHCL) has outlined six key growth drivers that it believes will power the next phase of expansion, with the company expressing confidence in delivering double-digit revenue growth in FY26 and FY27.
Speaking during the earnings call, Managing Director & CEO Puneet Chhatwal said like-for-like revenue growth is expected to continue, supported by favourable demand-supply dynamics across key markets and a sharper asset management focus that the company has pursued over the past seven years.
IHCL’s strong forward pipeline — including balance sheet assets and greenfield projects — provides multi-year visibility on revenue and EBITDA expansion. Management fee income is projected to grow in the high teens, driven by more than 60 planned openings.
The Ginger brand and new business verticals are expected to deliver over 25% revenue growth, aided by integration benefits and scale efficiencies. TajSATS, the airline catering joint venture, is also set to maintain its growth trajectory on the back of buoyant travel demand and structural tailwinds such as new airport development.
Strategic acquisitions, including boutique leisure brand Bridge and wellness retreat Atmantan, are expected to strengthen IHCL’s presence in high-growth segments.
Chhatwal said Atmantan will be expanded in a hybrid model over the next three years, with a mix of owned and capital-light projects. The immediate focus will be on adding one property in western India and another in Kerala, followed by locations near Hyderabad and potentially in the hills of north or east India.
CFO Ankur Dalwani said Atmantan, acquired recently, offers strong growth potential with margins exceeding 40-45%. The existing property is expected to add rooms and wellness inventory next year, with revenue projected to approach ₹100 crore. Over time, IHCL aims to scale the brand to three to five properties by 2030.
On the international front, IHCL reported improved performance in key markets. Its New York property crossed ₹100 crore in monthly revenue for the first time in December and turned cash profitable.
San Francisco saw a 50% year-on-year Revenue Per Available Room increase in Q3, though management expects further improvement. Cape Town and Dubai performed well, while Sri Lanka and the Maldives remained relatively volatile.
The company also plans to open Taj Frankfurt in the first quarter of the next financial year, along with its first safari lodge at Kruger National Park, followed by a second later in the year.
Overall, management said the combination of portfolio expansion, fee growth, asset optimisation and strategic acquisitions will strengthen earnings quality and sustain margin expansion over the medium term.