HospitalityBiz India
Hotels FoodService Operations Ministry Associations Equipment Editorial HR Technology Technology Advisory Board Community
Follow us on Facebook Follow us on Twitter instagram
    Home > Hotels
HOTELS

New financial year to be year of new openings and new signings: Puneet Chatwal, MD, IHCL

IHCL to undertake strategic change in biz models; to simplify holding structure

Tuesday, February 19, 2019, 19:44 Hrs  [IST]
HBI Staff|Mumbai

Riding on the strong PAT for Q3 during the current fiscal along with the improvement in the hospitality environment in the past 20 months, the Indian Hotels Company Limited (IHCL) is hopeful of opening one hotel per month in the next fiscal. 


Talking to the media, Puneet Chatwal, MD & CEO, IHCL, said, "We have signed 20 hotels in the current financial year. The financial year 2020 will be about new hotel signings and openings. We will be opening a minimum of one hotel per month. Something dramatically has to go wrong if we can't reach this target." Except one, the remaining 19 hotels recently signed are management agreements. 

As part of its Aspiration 2022 five-year business strategy, IHCL is looking at becoming the most iconic and profitable hospitality company. "We have set a target to increase our EBITDA margins by 8% which is a growth from 17% in 2017/18 to 25% in 2022-23.... The strategy is about scaling up inventory, sell non-core assets and simplify holding structure. We are still in the process of deciding on the simplification of holding structure considering the number of listed hotel companies we have. It is a complex procedure. As far as the non-listed companies are concerned, in the first phase, there will be amalgamation, buyout as well as offloading of entities in the coming months. The capital will be used for further expansion as well as reduce debt depending on the feasibility." 

Talking about hotel brands, Chatwal said that they see significant potential in the Ginger business. "Ginger is a perfect fit for a primary market as well as a secondary or tertiary market. About 5% of the consolidated revenue currently comes from the Ginger brand. With the brand restructuring, we are looking at Ginger and Taj brands to drive our growth strategy. Each of our brands are independent entities and have to emerge profitable entities." 

Chatwal spoke about the importance they are according to the Taj and Ginger brands. "77% of our hotels transitions in our portfolio which are currently underway will be to the Taj or Ginger brands. We detach anything or everything that dilutes the Taj brand." 

According to him, the change in business model allowing a good ratio of owned properties and management contracts is necessary for growth. "It is important to have a hedged portfolio allowing infusion of capital for investment and improving margins."

 
Print News Email News Back
Bookmark to Add to NewsvineNewsvine Bookmark with del.icio.usdel.icio.us Digg ItDigg
Add RSS to Add to Google Add to My Yahoo! Subscribe with Bloglines Subscribe
 POST A COMMENT
* Name :    
* Email :    
* Message :  
   
RELATED NEWS
»  We expect to be a top 3 pizza brand in India by 2025: Mahesh Reddy, CEO India, GOPIZZA
»  FHRAI-IHM Completes One Successful Academic Year, Hosts Annual Day Festivities
»  Advani Hotels and Resorts (India) Limited reports audited financial results for Financial Year 2021-2022
»  Anantara Hotels, Resorts & Spas Announces New General Manager Appointments in Africa, Indian Ocean and the Middle East
»  Welspun Corp Limited bags its single largest order worth INR 5000+ crore from The United States of America
»  Cygnett Hotels & Resorts appoints Amit Mahajan as Chief Growth Officer
»  Pride Group of Hotels announces promotions system wide
»  IHCL announces Ahvaan 2025
»  Sayaji Hotels expands its presence in Madhya Pradesh with the signing of 6 new properties
»  Cheval Collection expands with New Property in Glasgow
»  IHCL Elevates Vincent Ramos As Senior Vice President - Goa
»  CMC Launches A Brand New Line Of Veined Designs In KalingaStone Quartz
»  7 Apple Hotels & Resorts Brings Hospitality Experience To The Business Capital of India
»  AxisRooms co-founder & ex-CEO, Anil Kumar Prasanna launches his venture Tiniva
»  25 hotels and resorts managed by Concept Hospitality win Trip Advisor’s Travellers Choice Award for the year 2022
»  Rester Hotels & Resorts forays in Mumbai
»  Rester Hotels & Resorts launches two hotels in Hyderabad’s HiTec City and Kukatpally
»  Minor Hotels announces agreement with DGDA in KSA, to develop an Anantara Hotel in Diriyah
»  Araiya Hotels and Resorts unveils Araiya Anthology appointed as operator for Avas Living in Alibaug
»  HAI raises concern over raids & imposition of fines on Hotels in J&K
 
CoverStory
Analysis
 
  The Indian Institute of Architects (IIA) Natcon 2020 virtual event concludes successfully
  Winners of The Park Elle Décor Student Contest felicitated at Indian Design ID 2020
 
weekly
Receive the best of Hospitality content in your mailbox.
Weekly e-Newsletter
Events Calendar




Events
 
 
people
interview
newappoint
expert
© Copyright 2016 Saffron Synergies Pvt Ltd
HOME   |   ABOUT US   |   CONTACT US   |   FEEDBACK   |   DISCLAIMER   |   SITE MAP   |   ARCHIVES