What does the future look like for Indian Hotel Company?

adminJune 12, 2024

Indian hotel companies: Hotels have been at the forefront of hospitality as a means of welcoming guests and entertaining foreign officials, helping them adopt their own culture. The main theme is providing luxury to the elite. They are also economic drivers. The hotel industry is thriving as the demand for travel and tourism increases.

The economy grows and disposable income increases, which people use to spend on tourism and indirectly on hotels. As the population grows, this trend is likely to continue in the future. In this article, we will learn about hotels and India Hotels, which is leading growth in the hotel industry.

Company Profile of Indian Hotel Company

Indian Hotel Company It was founded in 1902 under the leadership of the Tata Group. They provide luxurious hospitality services and boast a diverse portfolio of brands and products. Taj, Vivanta, Seleqtions, Ginger, Ama Stays & Trails, Tree of Life resorts and hotels are some of the most well-known brands.

The company was able to expand its folio, especially with its presence in Frankfurt, Dhaka, Bhutan and Nepal in FY24. In India, we have expanded into new destinations such as airport hotels and larger hotels in key locations such as New Delhi, Kochi and Goa.

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Industry Overview

The Services industry in India Market is expected to be valued at USD 247.31 Billion in 2024, growing at a CAGR of 13.96% during the forecast period (2024-2029), growing to USD 475.37 Billion by 2029. . India’s status as a top global destination for both leisure and business travelers has benefited the country’s hospitality industry.

India’s appeal as a global destination is enhanced by its geopolitical stability, world-class infrastructure and commitment to hosting international events. In turn, these factors contribute to the growth of tourism and consequently sustain the hospitality industry.

Domestic tourism in India has shown remarkable resilience and tenacity, with its citizens increasingly opting for staycations. This preference for staycations is determined by a variety of considerations, including convenience, safety, and the opportunity to explore India’s hidden gems.

Key Performance Indicators and Corresponding Segments

For investors, it is important to look at some parameters. The occupancy rate in 2024 was approximately 80%. This indicated that the company’s room occupancy rate was approximately 80%, with the rooms being leased annually. Their operating inventory is 60% capital light and the remaining 40% capital intensive. This indicates increased hotel efficiency.

We have branches in 150 locations across 4 continents and approximately 13 countries. Indian Hotels Company has 220 operating hotels, of which 91 are planned. The total number of keys was 24,322, which were operational. As of April 30, 2024, there are 12,871 projects in the pipeline for the next few years.

IHCL’s employee retention rate is 75.40% and attrition rate is 24.60%. The company gets Rs. 32.12 lakh per employee. Most of its revenue comes from hotel services. Revenues are geographically distributed, with India accounting for approximately 81.02%, US at 9.76%, UK at 8.02% and other international regions at 1.18% as of FY24.

Finance of an Indian hotel company

The company’s operating revenue in fiscal year 24 was 150 million won. 6,768.75 crore, up from Rs. 5,809.91 crore in the previous year. Net profit recorded 30 billion won, a 26.34% increase compared to the same period last year. 1,330.24 crore from Rs. 1,052.83 crore. Indian Hotels Company’s salary as a percentage of revenue increased from 26.60% in FY23 to around 26% in FY24. The raw material cost to F&B revenue ratio in FY24 was around 21.80% compared to 22.20% in FY23.