India's Taj Hotels parent plans $592.5 mln capex over five years, shares jump

Indian Hotels

19/11/2024 10:13

By Manvi Pant
       Nov 19 (Reuters) - Indian Hotels Co. Ltd (IHCL)
 IHTL.NS  will invest 50 billion rupees ($592.5 million) over
five years as it aims to double its hotel count and consolidated
revenue, CEO Puneet Chhatwal said on Tuesday.
    Shares of the Tata Sons-owned company jumped as much as 3%
to an all-time high of 761 rupees, before closing 2.3% higher.
    IHCL is aiming to more-than-double its consolidated revenue
to 150 billion rupees by fiscal 2030 and boost its hotels count
to 700 plus by 2030 from 350 hotels in fiscal 2024, it said in
an exchange filing.
    The company had reported revenue of 70 billion rupees in
fiscal 2024.
    "Under the hotels expansion plans, 80%-90% of the projects
will be centered around the Indian subcontinent," Chhatwal said
at IHCL's investor day conference in Mumbai, adding that the
projects will be funded through internal accruals. 
    IHCL, which owns the Taj Hotels and Ginger Hotels chains,
aims to remain net cash positive and eyes 20% return on capital
employed. 
    The company has already surpassed its three-year goal,
unveiled in 2022 to target a portfolio of 300 plus hotels, but
management has refrained from giving any new guidance on
margins, Jefferies said in a note. 
    IHCL is effectively focussing on adding businesses which may
yield over 35% in margin growth in fiscal year 2025, the
brokerage said.
    
($1 = 84.3880 Indian rupees)

 (Reporting by Manvi Pant in Bengaluru; Editing by Eileen
Soreng)
 ((Manvi.Pant@thomsonreuters.com; +918447554364;))