Indian Hotels Company Ltd (IHCL), the hospitality arm of the Tata Group, is set to invest nearly INR6,000 crore (USD1 billion) over the next five years to double its hotel portfolio to 700 hotels and 70,000 rooms by FY30. The expansion includes a potential acquisition of a boutique hotel chain—with Tree of Life Resorts & Hotels emerging as a likely candidate.
At IHCL’s 124th AGM, Chairman N. Chandrasekaran confirmed plans for INR1,200 crore in annual capital expenditure. The company currently operates 232 hotels across its 350-property portfolio and aims to increase this to 500 operational hotels by FY30.
The growth will span IHCL’s core brands—Taj, Vivanta, SeleQtions, Gateway, and Ginger—and include new brand introductions. Tree of Life, with 16 boutique properties in hill destinations like Dharamshala, Manali, and Mussoorie, had earlier partnered with IHCL in 2024.
IHCL’s model will shift significantly in coming years, with a growing share of management contracts. “We used to own most of our hotels,” said Chandrasekaran. “Going forward, only 35–40% will be owned; the rest will be operated under contracts.”
A marquee INR2,500 crore investment is already underway in Mumbai, where IHCL is developing a 250-key luxury hotel adjacent to Taj Lands End. Chandrasekaran noted, “If we find iconic locations, we’ll build; otherwise, we’ll manage.”
IHCL’s aggressive strategy aligns with competitors like Marriott, which is on track to add 270 hotels and expand its India room count to 50,000 by FY30, making it the chain’s third-largest global market.
source: Financial Express
