India’s Tourism And Hotels Boom Boosted By 'Wed in India' And Infra Growth: Indian Hotels CEO
Managing Director and Chief Executive Officer, Puneet Chhatwal believes that a rising interest in destination weddings are positioning India as the go-to spot.
India's growing appeal as a global tourism and wedding destination is transforming its hospitality landscape, fuelled by improved travel infrastructure and initiatives like "Wed in India", according to Indian Hotels Co.'s Managing Director and Chief Executive Officer, Puneet Chhatwal.
Enhanced airport connectivity, iconic venues like Bharat Mandapam, and a rising interest in destination weddings are positioning India as a go-to destination for international tourists and event planners, he said.
Chhatwal, noted that these developments have created an ideal environment for the tourism sector. “Our cultural heritage, combined with improved infrastructure, makes India a unique destination. Weddings are now integral to our national identity, driving both domestic and international tourism,” he said in an exclusive to NDTV Profit.
The hoteliers' occupancy rates reflect this upward trend. In major metro cities such as Delhi, Mumbai, Pune, and Bangalore, occupancy levels between 76% and 84% signal healthy demand, enabling the company to maintain competitive room rates. “Our brands benefit from these occupancy rates, which strengthens our ability to charge higher rates,” Chhatwal said, adding that IHCL's performance aligns with this occupancy advantage.
In the September quarter, IHCL’s consolidated net profit surged over threefold to Rs 582.7 crore, surpassing expectations and driven by strong demand across its brands. International occupancy rose to 75%, and it's new ventures—Ginger, Qmin, and amã Stays & Trails—reported a revenue growth of 47%, highlighting the company’s commitment to diversifying.
Aggressive Expansion Plans
The company is rapidly expanding its footprint, currently on track to open two hotels each month and planning to accelerate to 2.5 or even three hotels per month. With 120 hotels signed and in various stages of development, the company expects to add a total of 25 new properties this year, 30 in the next fiscal, and 36 in fiscal 2027. “Our capital-light model enables us to scale up while keeping operations efficient,” Chhatwal said.
As India’s GDP continues to rise and disposable incomes increase, Indian Hotels sees a long-term shift in the hotel sector. “With projections for India to become the third-largest economy by 2047, we’re only at the beginning of a new demand-supply cycle that will redefine the industry,” Chhatwal said.
The company is set to announce a five-year market strategy, maintaining Ebitda margins above 20%, a level Chhatwal expects to sustain.
IHCL Q2 Earnings
The Indian Hotels' consolidated net profit more than tripled in the second quarter of the current financial year, beating analysts' estimates.
The profit of the hospitality firm, which operates the Taj brand, increased to Rs 582.7 crore in the quarter ended Sept. 30, according to an exchange filing on Thursday. Analysts tracked by Bloomberg had pegged the profit at Rs 248 crore.
Jefferies noted that this was another record quarterly performance for the company and this could accelerate further in the second half of the fiscal with 30% higher wedding dates year-on-year and an increase in foreign tourist arrivals. The management opined that despite slowdowns in other sectors, the hotels sector is benefiting from its own cycle of demand supply.
Shares of Indian Hotels rose 6.43% to hit record high of Rs 727.80 apiece on Friday on the NSE. It was trading 5.76% higher at Rs 723.20 apiece, compared to a 0.23% decline in the benchmark Nifty 50 as of 11:45 a.m.
