DRIVING IHCL'S TRANSFORMATION JOURNEY
Dear Stakeholders,
In India's evolving economic landscape, tourism has emerged as a powerful force driving
not only economic growth but also forging a path towards a brighter and more inclusive
future. With its rich cultural heritage and warm traditions, hospitality in India has
undoubtedly arrived on the world stage.
It is with immense pride and great pleasure that we present to you the 6th Integrated
Report of The Indian Hotels Company Limited. It reflects IHCL's transformation journey
towards becoming a hospitality ecosystem while building value for all our stakeholders.
India's growth story is characterised by a dynamic interplay of economic expansion,
changing consumer preferences, and evolving aspirations. Increasing affluence is leading
to new trends like the rise of premiumisation, experiential travel and brand
consciousness. The Indian travel and tourism industry is ranked among the fastest-growing
economic sectors in the country, contributing to employment generation and regional
development. According to the World Travel and Tourism Council, by 2028, the tourism and
hospitality industry is projected to generate a revenue of $50.9 billion and create50+
million jobs by 2029. The sector is well-positioned to capitalise on an upcycle, driven by
the demand-supply gap, market penetration opportunities in Tier II and Tier III markets,
strong demand drivers such as MICE, spiritual tourism, the rebound in foreign tourist
arrivals and destination weddings. This evolving landscape is marked by a heightened
consumer awareness and a stronger preference for brands. With our diverse portfolio,
iconic properties, world-class service, and a brandscape defined to serve myriad travel
and hospitality needs, we are uniquely placed to capitalise on the opportunities provided
by a dynamically growing industry.
Puneet Chhatwal
Managing Director and CEO
Ahvaan 2025
Ahvaan 2025, IHCL's route map for profitable growth, charted a new course for the
Company. We re-engineered our margins, re-imagined our brandscape and restructured our
portfolio to create sustained long-term value for all our stakeholders. I am proud to say
that we have achieved our key Ahvaan targets well ahead of time The year delivered best
financial metrics, marking ons eight consecutive quarters of a record performance. We
achieved an all-time-high consolidated revenue of 6,952 crores, a 17% increase over the
previous year and EBITDA stood at 2,340 crores, up by 20%.
EBITDA margin at 33.7% saw an expansion of 100 bps exceeding our Ahvaan 2025 target of
33%. PAT increased by 26%, reaching 1,259 crores. The underlying strength of our balance
sheet was highlighted by the free cash flow of 1,162 crores.
We expanded our international footprint with signings in Frankfurt, Dhaka, Bhutan and
Nepal. With 34 openings during the year and 53 signings, which translated to a new locati
contracteachweek,wearenowpresentin150 We continue to expand and evolve our brandscape.
IHCL announced the re-imagined Gateway, a full-service hotel offering in the upscale
segment, an ideal fit to capture growth opportunities in emerging micro markets
inmetrosandTierIIandTierIII starting with 15 hotels will commence with launches in Bekal
and Nashik, followed by destinations like Bengaluru, Thane and Jaipur. The brand will
scale to a 100 hotels portfolio by 2030. We also entered into a strategic alliance with
Tree of Life Resorts & Hotels, which will help to expand our brandscape further to
newer formats that cater to changing travel trends.
IHCL's New and Re-Imagined Business vertical comprising Ginger, Qmin, ama Stays &
Trails, The Chambers (membership fee) and TajSATS reported a revenue of 1,588 crores, a
growth of 35% over the previous year. ama Stays & Trails reached a portfolio of 200
properties with 100+ signings within the year. Reinforcing the brand's lean luxe
positioning, Ginger signed and launched large format hotels while TajSATS further cemented
its leadership in airline catering.
Pioneering Destinations
IHCL's pioneering spirit, which has put several destinations such as Rajasthan, Kerala,
Goa and Andamans on the global tourist map, continued with the signing of two resorts in
idyllic Lakshadweep at Suheli and Kadmat. The sustainability-focused development will aim
to create minimal footprint while preserving the fragile ecosystem in yet another
unexplored location. The Company, with a significantpresence spiritual hotels in Ayodhya
and one each in Vrindavan and Sarnath to develop new cultural circuits and itineraries.
Milestones
This year marked the 120th year of the
Palace, Mumbai, reflecting the journey of the iconic brand ‘Taj', that has etched
its name in the annals of history, having shaped the evolution of the hospitality
landscape in India. ‘The Taj' magazine, the award-winning publication portraying the
best of India in its pages completed 50 years in 2023.
Community at the Heart of Business
Guided by our founder Jamsetji Tata's vision IHCL endeavours to drive policies and
programmes that continue to build the bridges needed for a more humane and inclusive
society.
In a year that was transformative in terms of performance, we have continued to protect
the environment, enrich innovation. The Paathya framework has become the backbone of our
sustainability efforts, providing us with a clear and actionable roadmap toward a more
responsible and sustainable future.
Continuing our journey of eliminating single-use we have installed 40 bottling plants
and achieved 48% recycling of water used, reducing our environmental footprint. These
initiatives are complemented by our earning EarthCheck certification for 88 of our hotels,
ensuring compliance with global sustainability standards.
Our focus on social responsibility has translated into initiatives to skill nearly
8,000 youths, empowering them with the tools to build sustainable livelihoods. IHCL
partners and operates 32 skill centres across 15 States in India to build
industry-relevant talent pools. This effort is part of our broader commitment to fostering
inclusive growth and supporting community welfare. We believe that true success transcends
financial metrics to include the positive change we bring to the lives of our stakeholders
and to the broader society. As we forge ahead, our focus will remain on inspiring positive
transformations that deliver value across the board and strengthen national development.
Central to our mission of delivering unparalleled guest experiences is the wholehearted
dedication of our team, steered by our core values of Trust, Awareness, and Joy. I thank
them all and express my gratitude to all our stakeholders for believing in us.
Puneet Chhatwal
Managing Director and CEO