Indian Hotels Company sees double digit revenue growth in Q4 on rising room rates

Puneet Chhatwal, Managing Director and Chief Government Officer, Indian Hotels Company Restricted (IHCL)
| Photograph Credit score:
JOTHI RAMALINGAM B

Indian Hotels Company Restricted (IHCL) sees continued double digit revenue growth in the fourth quarter of this fiscal pushed by improve in common room rates.

Within the third quarter, IHCL reported 12 per cent year-on-year revenue growth. RevPAR (revenue per accessible room) rose by 9 per cent. The corporate expects the growth pattern to proceed in the March-end quarter with a number of excessive profile occasions corresponding to India AI Affect summit, T-20 world cup and weddings.

Within the post-third-quarter investor convention name, IHCL managing director and CEO Puneet Chhatwal stated it could be truthful to imagine roughly double digit RevPAR growth in the fourth quarter.

“If not, then it might be 9, it might be 8.8, however I believe with a little bit of tailwind that we’re at the moment having, we might get something between 9 per cent to 10 per cent RevPAR growth however positively you must anticipate a complete revenue growth in an identical vary as you will have skilled in the previous,” Chhatwal stated.

Whereas international vacationer arrivals are but to cross the pre-2019 determine, home journey stays sturdy. A beneficial demand provide dynamic continues to drive RevPAR growth. Luxurious phase too is performing properly, contributing practically 70 per cent of IHCL’s working revenue.

“We consider this isn’t cyclical alone however structural change that’s right here to remain. As a result of India’s journey and tourism ecosystem continues to deepen, pushed by rising disposable incomes, infrastructure investments, MICE (conferences, incentive, convention and exhibitions) demand, weddings, religious tourism and premiumisation of experiences. On the availability aspect additions stay measured in a number of key micro markets and that is finally supporting the RevPAR growth,” Chhatwal stated.

“For IHCL this interprets into continued pricing energy throughout segments, improved combine and yield administration, working leverage flowing by way of to margins. Because of this we anticipate regular like-for-like revenue growth to stay a significant contributor to earnings enlargement,” he added.

At current the corporate earns 53 per cent of its revenue from key home enterprise cities. Home leisure locations and worldwide markets contribute 15 per cent and 22 per cent respectively. 

IHCL can be scaling it’s geographic presence and merchandise by way of acquisitions. Not too long ago it acquired majority stakes in boutique luxurious model Brij and wellness resort Atmantan.

“These transactions strengthen our presence in excessive growth segments together with mid-scale, experiential leisure and holistic wellness whereas additional increasing our portfolio, scale and geographic footprint. Importantly, these acquisitions are anticipated to contribute meaningfully in the vary of ₹250 crore to ₹300 crore to IHCL’s consolidated topline in FY 27,” he stated.

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Revealed on February 22, 2026