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Informist, Monday, May 11, 2026

 

--Indian Hotels: Expect to open more than 60 hotels in FY27 

--CONTEXT: Comments by Indian Hotels' mgmt in Jan-Mar post earnings call 

--Indian Hotels: Aim 12-14% revenue growth in FY27 

--Indian Hotels: West Asia crisis impacted revenue from international hotels 

--Indian Hotels: Expect hotel in Frankfurt to open in June 

--CONTEXT: Indian Hotels had signed operating lease for Frankfurt hotel 

--CONTEXT: Indian Hotels had planned to open Frankfurt hotel in 2025 

--Indian Hotels: Weak INR may help attract foreign tourists to visit India 

--Indian Hotels: See domestic business faring better than international FY27 

 

By Avishek Rakshit & Prateem Rohanekar

 

KOLKATA/MUMBAI – Driven by new launches and addition of new rooms, Indian Hotels Co. Ltd. is targeting 12-14% growth in top line in the current financial year, a top company official said Monday. New hotel openings and a fillip in domestic tourism may aid the targeted growth. 

 

"We remain fairly confident that we will again deliver double-digit growth between let's say, 12% and 14% in the FY27 fiscal", Managing Director and Chief Executive Officer Puneet Chhatwal told sector analysts in a post-earnings call.

 

Chhatwal said Indian Hotels would come up with 60 new hotels in FY27 and add around 5,000 rooms to its current inventory, which will help generate more revenue. Around 4-5% growth from the minimum targeted ballpark growth of 12% will come from these new properties, he said. The rest 7% from the minimum growth target will come from existing properties including the ones the company opened in FY26. In the last financial year, the Tata group company opened 132 new hotels. It is investing INR 11 billion-INR 13 billion in FY27 as part of increasing its inventory. 

 

As on Apr. 30, Indian Hotels had 375 operational hotels with a total room count of 33,091 keys. Of these, 131 hotels with 13,087 rooms are owned directly by the company and 20 hotels with 1,723 rooms are through joint ventures. Two hundred and twenty-four hotels comprising 18,281 rooms are under management contracts and distribution agreements. 

 

Chhatwal said that the West Asia crisis is impacting the company's international operations and restraining travel, which is leading to a comparatively weak performance across its international operations. 

 

"Right now, the international hotels are (reporting) a little bit subdued performance," he said. "There was definitely impact after the West Asia conflict in the global market. So, we did see some loss of revenues in some of our hotels internationally, including London."

 

The official further said that while in India, people who stay in the hotels also eat and drink at the same hotel leading to higher revenue from the food and beverage vertical, as the industry terms it, it is not so globally. In the US or Europe, people only stay at hotels, which limits the revenue generation potential from these global properties. 

 

Chhatwal said that while the West Asian crisis had led to a slowdown in global travel, affecting hotel occupancy, a weak INR could lure foreigners to opt for a vacation in India and hence lead to higher room occupancy in India. At the same time, there has been a shift in the pattern of foreigner arrivals in India in the wake of global business events, he said.  

 

After its hotel in Frankfurt, Taj Hotel Hessischer Hof, got delayed, Chhatwal expects it to open for business in June. Back in 2023, Indian Hotels had signed an operating lease arrangement for the hotel under which the hotel was supposed to open with a 134-room inventory in 2025. However, the project was delayed. 

 

"In a way, it's good because of the situation the way it is," Chhatwal said, referring to lower room uptake in global markets in the wake of the West Asian crisis. 

 

However, the official is optimist of a boost to domestic tourism which could spur revenue growth. 

 

"(In) Goa, we have seen almost in the month of April, north of 25% growth in all of our hotels. Some have gone to 30% and beyond. So, averaging at 25%. Goa is definitely back since the last few months, March and April, and the trend is not changing. Kerala could improve, and Chennai could also improve. But Delhi had a very good year last year," he said. 

 

Even as Prime Minister Narendra Modi Sunday urged Indians to refrain from foreign travel to save foreign exchange, which may dent Indian Hotels' revenue from global operations, the hotelier feels that it might spur domestic tourism. However, Chhatwal said it was too early to comment or conclude on emerging trends or predict how it would shape up eventually. 

 

On Monday, shares of Indian Hotels closed 1.8% lower at INR 661.30 on the National Stock Exchange.  End

 

Edited by Avishek Dutta

 

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