Indian Hotels Company (IHCL) is ramping up its expansion plans with INR 750-800 crore capital expenditure (capex) allocated for FY25, a significant increase from previous years. This investment will fuel the development of new greenfield properties, marking a shift in focus.
Giridhar Sanjeevi, Executive Vice President and CFO at IHCL emphasises investing in “greenfields on top” of renovations, highlighting projects like the stunning Lakshadweep resort and Ekta Nagar property near the Statue of Unity. Additionally, the iconic Taj Malabar in Cochin and Taj Cochin International Airport are set for relaunch and opening, respectively.
IHCL’s capex hovered around 4-5% of annual revenue. However, FY23 saw a jump to INR 471 crore, further amplified by the hefty FY25 allocation. This strategy is complemented by the introduction of a new hotel brand catering to the tier-2 and tier-3 markets. Positioned between Ginger and Taj, the brand will offer full-service experiences at an average rate of Rs 8,000-9,000, targeting India’s vast non-metro population.