IHCL accelerates expansion plans, targets 700-hotel milestone by FY27

Indian Hotels Company Limited (IHCL), operator of the Taj hotel brand and other hospitality chains, is ramping up its expansion strategy with an accelerated timeline to achieve 700 properties. According to MD & CEO Puneet Chhatwal, the company is on track to hit this milestone three years earlier than previously planned, signalling robust momentum in India's hospitality sector recovery and growth trajectory.

The ambitious expansion reflects IHCL's confidence in domestic and international tourism demand as the Indian economy continues its recovery post-pandemic. The company's portfolio expansion encompasses multiple brands across luxury, upper-upscale and mid-range segments, catering to diverse market segments and geographic regions across India and internationally.

Alongside the property expansion targets, IHCL has upgraded its revenue growth guidance for FY27 to 15-17 per cent, raising expectations from the previously indicated 12-14 per cent range. The upward revision indicates stronger-than-anticipated performance in room occupancy, average daily rates and ancillary revenue streams including food and beverages and conferences.

The hospitality operator's accelerated growth plans come amid a broader recovery in India's tourism and hospitality sectors, supported by increasing domestic leisure and business travel, growing international visitor arrivals, and robust corporate spending on events and conferences. The expansion is expected to generate employment opportunities across properties and support ancillary service sectors in multiple Indian markets.