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Business Standard
8 hours ago
- Business
- Business Standard
Indian hospitality companies see little room for growth in FY26: Icra
Growth in the Indian hospitality sector is expected to normalise in this financial year (2025-26/FY26) as revenue growth for listed companies is set to settle between 6 and 8 per cent, largely due to the base effect following three years of continuous double-digit revenue expansion seen by the industry between 2022-23 and 2024-25 (FY25). 'We estimate pan-Indian premium hotel occupancy to hold at 72–74 per cent in FY26, slightly higher than the 70–72 per cent levels witnessed in 2023-24 and FY25. The average room rates (ARRs) for premium hotels are projected to rise to ₹8,200–8,500 in FY26, after ₹8,000–8,200 in FY25,' credit rating agency Icra said in a new note on Monday, while revising the sector outlook to 'stable' from 'positive'. Supply growth is expected to lag demand over the next 12–18 months. Several hotels are undertaking renovations, refurbishment, and upgrades. While the near term may see muted foreign tourist arrivals in the aftermath of the terror attacks, the sector is expected to witness gradual recovery thereafter, along with demand driven by domestic tourism and improvements in infrastructure and air connectivity. Favourable demographics and anticipated growth in large-scale meetings, incentives, conferences, and exhibitions (MICE) events, with the opening of multiple new convention centres in the past few years, among other factors, will support growth over the medium term. Listed hospitality companies, like Taj parent Indian Hotels Company (IHCL) and the mid-scale chain Lemon Tree Hotels, continue to expect double-digit growth in FY26 while undertaking renovation activities across some of their properties. 'We expect to deliver strong growth with sustained margins and continued portfolio expansion, with a target of opening 30-plus hotels in FY26, three of which will be on our balance sheet. We are well on track to achieve our committed guidance of double-digit growth,' Puneet Chhatwal, managing director (MD) and chief executive officer of IHCL, told investors in a post-earnings call after announcing the company's January–March quarter (Q4) results last month. Companies are likely to report range-bound operating margins of 34–36 per cent for FY26, despite lower revenue growth. The margins will remain supported by factors like cost-rationalisation measures and asset-light expansions in recent periods. 'However, within the sample, it is likely to be a mixed bag, depending on renovations and increases in employee expenses amidst growing demand,' the note added. In FY25, IHCL spent over ₹1,000 crore towards capital expenditure (capex), of which half was used for renovations, routine maintenance, and digital initiatives. For FY26, the company has earmarked over ₹1,200 crore. 'There's also large renovations planned in some of our assets, including Taj Palace in Delhi, Fort Aguada in Goa, St James' Court in the UK, and Taj Bengal, Kolkata. So essentially, if you put it all together, 60–65 per cent of the capex would get spent on renovations and digital investments,' Chhatwal added during the analyst call. At Lemon Tree Hotels, meanwhile, renovation costs are expected to impact gross ARR and occupancy in the coming year. 'The timely completion of renovation activities in the owned portfolio will further improve gross ARR and occupancy. Increased investment in renovation expenses will continue into FY26 and a little bit into 2026–27, until the entire portfolio of our owned hotels — about 6,000 rooms — has been fully renovated and refurbished. After this, renovation expenses will close at 1.5–1.7 per cent of revenue on an ongoing basis,' Patanjali G Keswani, chairman and MD at the chain, told investors after announcing the company's Q4 results.
Hospitality Net
22-05-2025
- Business
- Hospitality Net
Ginger Brings Lean Luxe to Dehradun
Indian Hotels Company (IHCL), India's largest hospitality company, announced the opening of Ginger Dehradun. This new addition to the Ginger portfolio brings the brand's signature lean luxe philosophy to the capital of Uttarakhand. Strategically located near major tourist attractions and commercial hubs, Ginger Dehradun offers 72 rooms designed for comfort. Guests can enjoy all-day dining at Qmin, a smart meeting room, the fully equipped fitness centre, and the vibrant community spaces. Nestled in the heart of the Doon Valley, Dehradun, serves as a gateway to several popular tourist destinations in Uttarakhand, including Mussoorie, Rishikesh, and Haridwar. Known for its prestigious educational institutions and numerous attractions including Robber's Cave and Sahastradhara, Dehradun is one of India's most popular hill cities. For more information, visit Ginger Dehradun Hotel website
Business Upturn
21-05-2025
- Business
- Business Upturn
IHCL signs Taj Pushpabanta Palace in Agartala, expands North East portfolio to 14 hotels
By Aman Shukla Published on May 21, 2025, 16:51 IST Indian Hotels Company (IHCL), India's largest hospitality firm, has announced the signing of a new hotel project, Taj Pushpabanta Palace, in Agartala, Tripura. This development is being undertaken as a public-private partnership with the Tripura Government. The Pushpabanta Palace, originally built in 1917 as a royal retreat, will undergo refurbishment as part of the project. The restored palace will house select public areas and royal suites, while the main accommodation offerings—around 100 rooms—will be located in a newly constructed building that reflects the architectural style of the original structure. The overall development, including the restoration and construction, is expected to be completed within the next three years. This project is part of IHCL's broader expansion strategy in the North East region of India. Currently, the company operates nine hotels across the region under its various brands. These include properties in Guwahati, Gangtok, Shillong, Tawang, Agartala, and Pakyong. IHCL's presence spans across its Taj, Vivanta, Ginger, and Tree of Life brands. The company also has a pipeline of five upcoming hotels in key North Eastern cities, including Agartala, Itanagar, Guwahati, Jorhat, and Dibrugarh, indicating a continued focus on growth in this region. Aman Shukla is a post-graduate in mass communication . A media enthusiast who has a strong hold on communication ,content writing and copy writing. Aman is currently working as journalist at
Time of India
21-05-2025
- Business
- Time of India
Taj Alibaug Resort & Spa: IHCL enters Alibhaug with Taj property, ET HospitalityWorld
Indian Hotels Company (IHCL), announced the opening of Taj Alibaug Resort & Spa, Maharashtra, a coastal sanctuary nestled amidst swaying palms and lush landscapes. Puneet Chhatwal, managing director & CEO, IHCL, said, 'Located across the shore, Alibaug has long been a favoured leisure destination for Mumbaikars. The launch of Taj Alibaug Resort & Spa marks IHCL's debut in this micro-market, further strengthening our presence in Mumbai's leisure circuit and expanding our brandscape and footprint in Maharashtra.' The 156-key Taj Alibaug Resort & Spa, Maharashtra is a seaside haven that blends nature's serenity with refined luxury. Its spacious rooms, suites, and villas are thoughtfully designed with soft hues and natural textures. Inspired by Alibaug's coastal charm, the resort's architecture fuses contemporary elegance with earthy elements, flowing seamlessly into courtyards and lush gardens. Advt Dining is a celebration of flavours with three distinct venues Aparanta, the all-day dining restaurant; Konkan Café, outpost of the iconic coastal specialty restaurant showcasing the region's culinary heritage; and 24 Alive, a bar serving handcrafted cocktails. Guests can indulge in immersive spa experiences at J Wellness Circle , offering holistic rejuvenation where age-old Indian healing traditions meet modern therapies that nourish both body and mind. The resort features multiple indoor and alfresco venues, ideal backdrops for social celebrations and grand gatherings. For those seeking recreation, the resort also offers a swimming pool, a fully equipped fitness centre and kids activity area. Ananth Gaddala , general manager, Taj Alibaug Resort & Spa, Maharashtra said, 'Taj Alibaug Resort & Spa is an ode to the coastal spirit of Alibaug. We look forward to creating unforgettable memories for our guests in this unique setting.'Alibaug, a short drive or ferry ride away from Mumbai, is well-known for its pristine beaches, picturesque scenery, and historical sites. Join the community of 2M+ industry professionals Subscribe to our newsletter to get latest insights & analysis. Download ETHospitalityWorld App Get Realtime updates Save your favourite articles Scan to download App
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Business Standard
09-05-2025
- Business
- Business Standard
Hotel, realty stocks under pressure, slip up to 7% on Friday; here's why
Share prices of hotel, real estate companies on Friday Share prices of listed hotel and real estate companies were under pressure, falling up to 7 per cent on the BSE in Friday's intra-day as both benchmarks - the BSE Sensex and the NSE Nifty - fell 1 per cent each after tensions between India and Pakistan worsened late on Thursday. Indian Hotels Company (IHCL), Lemon Tree Hotels, EIH, Chalet Hotels, ITC Hotels, Samhi Hotels, EIH Associated Hotels and Ventive Hospitality dropped in the range of 3 per cent to 7 per cent. DLF, Macrotech Developers (Lodha), Anant Raj, Godrej Properties, Prestige Estates Projects and Sobha were down between 3 per cent and 6 per cent in intra-day trade. At 12:40 pm; the BSE Realty index was the top loser among sectoral indices, down 2.7 per cent, as compared to 1.03 per cent decline in the BSE Sensex. The realty index dipped 4 per cent in intra-day trade. Why hotel shares trade weak? Hotel and tourism industry will be impacted by war-like situation between India and Pakistan. The tensions between India and Pakistan have led to closure of 27 airports across North, west and central India. Closure of airports and travel restriction on areas close to the border (including Amritsar, Jalandhar, and Dharamshala) will have an impact on the business of travel and hospitaility due to cancellation of bookings during the holiday season, ICICI Securities said in a note. If escalation continues for a while it will have a large impact on the business performance of the hotel companies in the near term. Among the hotel properties, the large impact of escalations is likely to impact Lemon Tree and IHCL. The brokerage firm said they will keenly monitor the situation ahead. Long term growth prospects of travel and hospitality are intact. DLF shares near 52-week low Share price of DLF, one of the oldest and largest real estate companies in India, dipped 6 per cent to ₹ 618 on the BSE in intra-day trade today. The stock was trading close to its 52-week low of ₹ 601.20 touched on April 7, 2025. It has corrected 33 per cent from its 52-week high level of ₹ 928.70 hit on September 26, 2024. DLF is involved in the real estate development sector, encompassing construction, operation and maintenance of real estate properties. Its range of products includes residential properties, commercial office spaces, retail establishments (Malls) and hospitality ventures (Hotels and Clubs). Cyclicality in the real estate segment causes fluctuations in cash inflow. As against this, cash outflow towards projects and debt obligations are relatively fixed, resulting in substantial cash flow mismatch. Any decline in the pace of sales could lower the expected collections in the medium term. DLF has significant plans of expanding its ongoing portfolio to maintain the growth momentum and strengthen its market presence in the existing as well as new micromarkets. While new projects will offer diversification in terms of geography (expected launches in Goa, Tri City, etc), any decline in demand may adversely impact the cash flow position, according to rating agency ICRA. Nevertheless, ICRA expects DLF to benefit from its strong brand and healthy affordability in the residential real estate market. In addition, being a cyclical industry, the real estate sector is highly dependent on macro-economic factors, which exposes the Group's sales to any downturn in demand.
