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IHCL Unveils Fiscal Third Quarter 2023-24 Financial Results

Written by Hoteliers Web

Achieves Seven Consecutive Quarters of Outstanding Performance with Revenue of INR 2,004 Crores, a 15% Year-over-Year Increase. EBITDA Reaches INR 772 Crores, Reflecting an 18% Year-over-Year Growth, and EBITDA Margin Stands at 38.5%. Profit After Tax (PAT) Records INR 452 Crores, Marking an 18% Year-over-Year Growth.

The Indian Hotels Company Limited (IHCL), India’s largest hospitality company, has disclosed its consolidated financial results for the third quarter ending December 31st, 2023.

CONSOLIDATED FINANCIAL RESULTS FOR Q3 AND NINE MONTHS ENDED 31ST DEC 2023 – Q3 YoY PERFORMANCE

Commenting on the Q3 FY24 performance, Mr. Puneet Chhatwal, Managing Director & CEO, IHCL, highlighted the company’s all-time high consolidated Q3 EBITDA margin of 38.5% and PAT margin of 22.6%. This marks seven consecutive quarters of record financial performance. The robust performance was driven by RevPAR premium in same-store hotels across markets, strong performance in not like-for-like growth, and the successful scaling of new businesses.

Mr. Chhatwal also emphasized IHCL’s industry-leading growth, with 28 hotels signed and 16 hotels opened during the fiscal year. The milestone of reaching the 200th operating hotel and the successful launch of the 371-key flagship Ginger at Mumbai Airport underscore IHCL’s potential to leverage sustained demand in the sector.

In terms of financials, Mr. Giridhar Sanjeevi, Executive Vice President and Chief Financial Officer, IHCL, highlighted a stellar Q3 performance in the domestic market, with standalone revenue reaching INR 1,323 crores, a 22% YoY growth. The EBITDA margin expanded to 45.4%, representing a 290-basis points increase. Consolidated results demonstrated a robust performance with an Operating EBITDA margin of 37.3%, a 190-basis points expansion, reflecting high revenue flow-through.

On a year-to-date basis, IHCL reported an all-time high revenue of INR 5,000 crores, an EBITDA margin of 32.7% in line with the Ahvaan 2025 guidance, and maintained healthy cash and cash equivalents of INR 1,810 Crores as of December 31, 2023.

Q3 PERFORMANCE HIGHLIGHTS

  • Total Revenue for the quarter was led by a 21% growth in Room Revenue.
  • IHCL outperformed the industry in domestic same-store RevPAR with a premium of 70% compared to the competition.
  • Demand buoyancy in the international portfolio led to an occupancy of 70%, resulting in a RevPAR growth of 9% over the previous year.

DOMESTIC DOMINANCE

  • IHCL continues to demonstrate industry-leading growth with 28 hotels signed and 16 hotels opened on a year-to-date basis.
  • FY 2024 marks the milestone of IHCL reaching the 200th operating hotel.
  • Recent signings include new destinations like Ayodhya, Itanagar, Dibrugarh, Surat, Dehradun, and Chitwan in Nepal, expanding its footprint to over 130 locations.
  • IHCL expanded its presence in the East and North East with the opening of Taj Taal Kutir, Kolkata, Vivanta Tawang, and Ginger hotels in Durgapur and Gangtok.
  • In Rajasthan, IHCL opened Taj Ranthambore and Gorbandh Palace, Jaisalmer.
  • Ginger brand expanded with the flagship 371-room hotel at Mumbai Airport and a 110-room Ginger in NOIDA, its fourth hotel in the NCR micro market.

NEW BUSINESSES & MANAGEMENT FEE – Q3

IHCL’s New Business vertical, comprising Ginger, Qmin, amã Stays & Trails, The Chambers (membership fee), and TajSATS, reported a revenue of INR 420 crores. With a growth rate double that of IHCL Enterprise, New Business now accounts for 11.1% share of IHCL Enterprise revenue.

TajSATS reported a revenue of INR 233 crores, a 34% growth over the previous year maintaining an industry-first EBITDA margin of 25.8%. Ginger reported a revenue of INR 134 crores, a 34% growth over the previous year with an EBITDAR margin of 44%. amã Stays & Trails clocked a YTD December brand revenue of INR 25 crores, a 31% growth over the previous year. Qmin reported a YTD December brand revenue of INR 72 crores, a 79% growth over the previous year reflecting the inclusion of 34 Qmin outlets in Ginger hotels.

Management Fee income grew by 13% over the previous year at INR 134 crores reflective of IHCL’s asset-light strategy.

ESG+ FRAMEWORK OF PAATHYA

IHCL now uses 39% energy from renewable sources and has installed 335 EV charging stations across 142 locations in India. Continuing its journey of eliminating single-use plastic, IHCL installed 40 bottling plants and achieved 47% recycling of water used. In its effort to bridge the employability gap in the industry, IHCL has partnered for 32 skill centres across locations in India.

AWARDS AND RECOGNITION

  1. TAJ RANKED THE BEST IN THE ‘WORLD’S FINEST LUXURY GRAND PALACES’ CATEGORY BY ‘101 EXECUTIVE SUMMIT’, GERMANY
  2. GOLDEN PEACOCK AWARD FOR HR EXCELLENCE, 2023 AWARDED TO IHCL
  3. IHCL RECOGNISED BY CONFEDERATION OF INDIAN INDUSTRY (CII) IN TOP 50 INNOVATIVE COMPANIES OF 2023
  4. BRAND FINANCE’S BRAND VALUE REPORT INDIA 2023 – TAJ RANKED AS INDIA’S STRONGEST BRAND FOR THIRD TIME
  5. IHCL RECEIVED 2023 INTERNATIONAL CENTER FOR RESPONSIBLE TOURISM (ICRT), INDIA FOUNDATION RESPONSIBLE TOURISM AWARD FOR ‘BEST FOR TACKLING PLASTIC WASTE’
  6. GOLDEN PEACOCK AWARD FOR RISK MANAGEMENT 2023
  7. TRIPADVISOR – 2023 TRAVELLERS’ CHOICE AWARD – RAMBAGH PALACE, JAIPUR RANKED WORLD’S NO. 1 HOTEL
  8. GOLDEN PEACOCK AWARD FOR TRAINING 2023
  9. CNBC TV18 – ICICI LOMBARD INDIA RISK MANAGEMENT AWARDS 2023 – MASTER OF RISK IN BUSINESS MODEL ADAPTABILITY
  10. CONDÉ NAST TRAVELER READER’S CHOICE AWARDS 2023
    1. HOTELS ON BEST HOTELS IN INDIA LIST
      1. UMAID BHAWAN PALACE, JODHPUR – RANKED NO. 1
      2. TAJ LAKE PALACE, UDAIPUR
      3. TAJ NADESARPALACE, VARANASI
      4. THE TAJ MAHAL PALACE, MUMBAI
    2. BEST RESORT ASIA – TAJ ARAVALIRESORT & SPA, UDAIPUR
    3. BEST RESORT IN THE INDIAN OCEAN – TAJ CORAL REEF RESORT & SPA, MALDIVES
    4. BEST RESORT IN MIDDLE EAST – TAJ EXOTICA RESORT & SPA, THE PALM, DUBAI
  11. CONDE NAST GOLD LIST 2023 – THE TAJ MAHAL PALACE, MUMBAI
  12. LA LISTE WORLD’S BEST HOTELS 2023 – TOP 1000 WORLD’S BEST HOTELS
    1. RAMBAGH PALACE, JAIPUR
    2. FALAKNUMA PALACE, HYDERABAD
    3. THE TAJ MAHAL PALACE, MUMBAI
    4. TAJ LAKE PALACE, UDAIPUR
    5. UMAID BHAWAN PALACE, JODHPUR
    6. TAJ PALACE, NEW DELHI
    7. TAJ LANDS END, MUMBAI
    8. TAJ HOLIDAY VILLAGE RESORT & SPA, GOA
  13. TRAVEL + LEISURE READERS’ – “WORLD’S BEST AWARDS”
    1. 25 FAVORITE HOTEL BRANDS OF 2023 – TAJ HOTELS RESORTS & PALACES
    2. FAVOURITE RESORTS IN INDIA OF 2023 – TAJ LAKE PALACE, UDAIPUR
    3. BEST 100 HOTELS IN THE WORLD – TAJ LANDS END, MUMBAI, INDIA
    4. BEST CITY HOTELS IN ASIA – TAJ LANDS END, MUMBAI
    5. FAVORITE CITY HOTELS IN INDIA OF 2023 – TAJ LANDS END, MUMBAI
    6. 15 FAVORITE HOTELS IN NEW YORK CITY OF 2023 – THE PIERRE, NEW YORK

About The Indian Hotels Company Limited

The Indian Hotels Company Limited (IHCL) and its subsidiaries bring together a group of brands and businesses that offer a fusion of warm Indian hospitality and world-class service. These include Taj – the iconic brand for the most discerning travellers and ranked as India’s Strongest Brand 2023 as per Brand Finance; SeleQtions, a named collection of hotels; Vivanta, sophisticated upscale hotels; and Ginger, which is revolutionising the lean luxe segment.

Incorporated by the founder of the Tata Group, Jamsetji Tata, the Company opened its first hotel – The Taj Mahal Palace, in Bombay in 1903. IHCL has a portfolio of 285 hotels including 85 under development globally across 4 continents, 12 countries and in over 100 locations. The Indian Hotels Company Limited (IHCL) is India’s largest hospitality company by market capitalization. It is primarily listed on the BSE and NSE.

Please visit: www.ihcltata.com; www.tajhotels.com; www.seleqtionshotels.com; www.vivantahotels.com; www.gingerhotels.com