IHCL Invests Rs 6000 Crore in Expansion, Eyes Boutique Hotel Acquisitions
Indian Hotels Company Limited (IHCL) plans to invest Rs 6000 crore over five years to expand its hotel portfolio, including a potential acquisition of boutique hotel chains like Tree of Life.
Indian HotelsExpansionBoutique HotelsReal EstateLuxury PropertiesReal Estate MumbaiJul 07, 2025
Considering a capital expenditure of Rs 1,200 crore every year, the company is looking at an investment of nearly $1 billion for the next five years. The goal is to significantly boost its portfolio, which currently stands at 350 hotels, including more than 232 operational properties across various brands. By the end of FY30, IHCL aims to have 700 hotels, with 500 of them operational.
The expansion plans will not only increase the number of hotels but also the number of rooms, which is expected to jump from over 42,500 to 70,000 by FY30. This growth will be spread across IHCL’s existing brands such as Taj, Vivanta, Gateway, Seleqtions, and Ginger, with the addition of new brands to the portfolio.
One of the key strategies in IHCL’s expansion plan is the acquisition of boutique hotel chains. “We cannot expand faster, so, there is an opportunity for a chain of boutique hotels like the Tree of Life. We are looking at acquiring such chains,” Chandrasekaran added. In 2024, IHCL formed a strategic alliance with the Tree of Life Resorts & Hotels, part of the Kolkata-based Ambuja Neotia Group. This chain comprises 16 properties, many of which are located in scenic hilly locations like Dharamshala, Manali, Kumaon, and Mussoorie.
IHCL’s expansion plans come at a time when its rivals, such as Marriott, are also ramping up their growth. Marriott has built a pipeline of 112 properties across 17 brands, bringing its total to 158 hotels and a pipeline to hit 270 hotels. By the end of FY30, Marriott’s room count will increase from 30,000 to 50,000, making India its third-biggest market globally, after the US and China.
While IHCL will invest heavily in expansion, the company will also focus on increasing the share of properties managed by it but owned by others. “Some 7-8 years ago, we used to have 5% management contracts and the rest owned. We cannot expand like that,” Chandrasekaran explained. The company aims to achieve a composition of 50% owned and 50% management contracts. Over the next 5-10 years, this ratio is expected to settle at 35-40% owned hotels and the rest being management contracts.
One of the significant projects in IHCL’s expansion plan is the development of a luxury property in Mumbai next to the Taj Land’s End. This 250-key property will see an investment of Rs 2,500 crore and will be owned by IHCL. “While we continue to build iconic properties, if we get an iconic location, we will build it ourselves; otherwise, we will go for management contracts,” Chandrasekaran concluded.
Frequently Asked Questions
What is IHCL's total planned investment for expansion over the next five years?
IHCL plans to invest Rs 6000 crore over the next five years for its expansion activities.
How many hotels does IHCL aim to have by the end of FY30?
IHCL aims to have 700 hotels, with 500 of them operational, by the end of FY30.
What is the target number of rooms for IHCL by FY30?
IHCL aims to have 70,000 rooms by FY30, up from the current 42,500 rooms.
Which boutique hotel chain is IHCL considering for acquisition?
IHCL is considering acquiring the Tree of Life Resorts & Hotels, part of the Kolkata-based Ambuja Neotia Group.
What is the planned composition of owned and managed properties in IHCL's portfolio over the next 5-10 years?
IHCL plans to have a composition of 35-40% owned hotels and the rest being management contracts over the next 5-10 years.
Related News Articles
Former MLA Bapusaheb Pathare May Contest Upcoming Elections under NCP-SP Banner
Real Estate · CREDAI Pune Metro Honours Real Estate Projects Providing Best Facilities to Construction Workers
Brokerages Bullish on Macrotech Developers: Q2 Update Boosts Stock by 4%
Mumbai, real estate, commercial building. Macrotech Developers Limited (MDL) reported strong pre-sales and collections in Q2FY25, leading to a 4.32% surge in share prices. Analysts recommend a 'Buy' rating.
G Square: Revolutionizing India's Real Estate Market
The real estate market in India has witnessed a significant transformation in recent years, and at the forefront of this change is G Square, a leader in plotted development.
Indian REITs Association Appoints Alok Aggarwal to Boost Sector Growth
The Indian REITs Association (IRA) has announced the appointment of Alok Aggarwal, MD and CEO of Brookfield India Real Estate Trust, as its new Chairman. This move is expected to accelerate the growth and development of the REIT sector in India.
Saudi Arabia's USD 63-Billion Giga Project Diriyah Attracts Indian Investors
The USD 63.2 billion real estate and tourism project in Diriyah, Saudi Arabia, is drawing significant interest from Indian investors. The ambitious development aims to transform Diriyah into a premier global destination for culture, heritage, and tourism.
ED Seizes Control of Congress-Linked AJL Assets Valued at Rs 661 Crore
The Enforcement Directorate (ED) has issued notices to take possession of assets worth Rs 661 crore linked to the Congress party through Ajay Laxmi Properties Limited (AJL). The notices require occupants to vacate the properties or transfer rent proceeds to the ED.