Indian Hotels Company Limited (IHCL) business performance continues to show resilience despite lack of big ticket events this year, company's Managing Director and Chief Executive Officer Puneet Chhatwal has said. Last year the hospitality sector saw an upswing due to events like the G-20 summit and world cup cricket but this year there are fewer mega events. IHCL's first quarter too was subdued compared to previous fiscal year because of higher base and certain other events. Chhatwal however remains confident of the company clocking double digit revenue growth in FY25. Chhatwal said the group has been able to maintain room rates and even increase them despite the absence of large events. "There is a very small increase but the important thing is that it shows resilience," Chhatwal told businessline. Occupancy rose by a per cent to 76 per cent and average room rates were 2 per cent higher at ₹9900 on a year on year basis in Q1FY25 across brands within India. Similarly, revenue per available room (RevPAR) in the quarter was 3 per cent higher at ₹7500.
"Our operating revenue of ₹1550 crore was the highest ever in the first quarter. We continue to post industry leading margins on a consolidated basis," said Chhatwal.
However, compared to the first quarter of last fiscal year the business performance was subdued. Apart from higher base effect, the business growth was slower due to elections, extreme heat wave in some parts of the country and shifting of auspicious wedding dates to the second quarter of this fiscal year.
"The first 18 days of July have more than compensated for the muted first quarter," he added.
Gateway brand
He said the first hotels under the re-imagined Gateway brand will be launched by August end or early September. This includes a new property in Bekal and a refurbished existing hotel in Nashik. Hotels under the brand will also open in Coonoor, Chikkamagaluru and Varkala. As full service four star hotels these would contribute to the group's food and beverage and banquet business.
The group in May announced its first branded residence project combining a 235-room hotel and 123 apartments in Chennai. The project is expected to come up by 2027 and will mark its foray into space. At present, IHCL offers long stays to customers (one to two years) through Wellington Mews. IHCL has decided to consolidate accounts of its in-flight catering arm Taj SATS on a line by line basis as a subsidiary. IHCL's top management is already driving the strategy and execution at Taj SATS whose volumes have nearly doubled in five years. The company makes around 60 per cent of all in-flight meals in the country. Chhatwal said the idea to consolidate the accounts is a part of overall IHCL strategy to create a holistic hospitality ecosystem. Earlier in 2021 IHCL had acquired hundred per cent shares of Roots Corporation which runs Ginger hotels and made it a subsidiary. "Roots Corporation is now integrated and the same will be the case with Taj SATS," he added.