Indian Hotels Company (IHCL), which operates under the renowned Taj hotels, has set aside a remarkable Rs 1,800 crore to fund its plans for inorganic growth over the next three years, according to chairman Ratan Tata.
At the recent annual general meeting with shareholders, Mr. Tata announced that IHCL aims to establish four new airport hotels across India, including one situated in Navi Mumbai, within the upcoming years.
Furthermore, the firm is looking to expand its footprint in the beautiful Andaman Islands and has formed marketing partnerships with hotels in both Japan and Korea. The company is committed to acquiring iconic standalone properties globally, enhancing its diverse portfolio.
Last year, IHCL realized an average room occupancy rate of 73%. In an upcoming move, the firm plans to increase its room tariffs by approximately 10-15%, effective September 1. In response to inquiries from shareholders regarding market conditions, Mr. Tata pointed out that the current rise in real estate prices poses challenges for the expansion of its budget brand, Ginger. However, he reassured stakeholders that the company is not currently experiencing a liquidity crunch, even amidst tight market conditions. Recently, IHCL inaugurated a new Ginger hotel in Panaji, Goa.
Addressing queries about Orient Express Hotel (OEH), Mr. Tata clarified that IHCL would not pursue a hostile takeover of the Bermuda-based entity. Last year, IHCL acquired a 11.5% stake in OEH, expressing a desire for a strategic alliance to foster mutual growth. Unfortunately, this overture was met with opposition from OEH's management, who expressed concerns about the Taj brand.
Mr. Tata further revealed that the group has initiated Tata Realty and Infrastructure, appointing IHCL vice-chairman Krishna Kumar to manage its operations. He mentioned that this new entity might be considered for a public listing in the future.