HBI Staff | Mumbai 
In its bid to expand its presence in the global market, Indian Hotel Company Limited (IHCL) is entering into a lease agreement to operate a hotel in Frankfurt. The Tata Group company proposes to spend Euro 5 million on renovating this property that will be leased to them for 30 years (20 years with rights of two renewals of five years each).
In addition to that, IHCL will buy 100 percent equity of Pamodzi Hotel PLC (a listed company in Zambia) from Tata International Singapore PTE Limited. Pamodzi Hotels has long-term leasehold rights for Taj Pamodzi, Zambia – a luxury hotel in Lusaka city. At present, 90% equity of Pamodzi Hotels PLC is owned by Tata International Singapore PTE Ltd. The transaction is subject to Tata International Singapore PTE Ltd acquiring the balance 10 percent equity in Pamodzi Hotels PLC through a delisting process in Zambia.
Riding high on profits
IHCL posted 31 percent year-on-year growth in consolidated net profit in the first quarter of FY24 on the back of a rise in occupancy and room rates. Net profit in the first quarter of FY24 stood at ₹222 crore as against ₹170 crore in the same period last year. EBITDA grew by 13 percent to ₹459 crore, and revenue rose 17 percent to ₹1,516 crore in the same period.
In a statement, IHCL Managing Director and CEO Puneet Chhatwal said double-digit revenue growth led to revenue crossing ₹1,500 crore in the first quarter. “The outlook for upcoming quarters remains strong, with the pace of demand driven by domestic consumption momentum, global events, and the revival of international arrivals,” he said.
The company said it outperformed industry peers, reporting a 55 percent premium in revenue per available room. Occupancy in international properties too showed 11 percent year-on-year growth to 65 percent.
IHCL’s chief financial officer, Giridhar Sanjeevi, said a strong focus on profitability and cash flow resulted in the company reporting a steady EBITDA margin of 30.3 percent and net cash of ₹889 crores as of June end. “In Q1, we have commenced capital investments towards the renovation and upgradation of select hotels in our portfolio,” Sanjeevi said.
