IHCL to Invest Rs. 6000 Crore to Double Hotel Portfolio by FY30

Indian Hotels Company Ltd (IHCL), India's premier hospitality group, has declared an investment plan of around ₹6,000 crore for the next five years to decisively augment its hotel portfolio. It is seeking to expand to 700 hotels and 70,000 rooms by FY30 from its current standing of 350 hotels and 42,500 rooms.

Addressing IHCL's 124th annual general meeting, N. Chandrasekaran, Chairman of IHCL presented the ambitious growth plan, saying, "We intend to invest ₹1,200 crore every year for the next five years to achieve our ambitious growth goals. This will be a mix of organic expansion and strategic acquisitions." 

Key Highlights-

• IHCL plans to invest 6000 crore rupees over five years to expand to 700 hotels and 70000 rooms by FY30
• The company aims to shift its model to 60 to 65 percent management contracts for faster asset-light growth
• IHCL is exploring boutique hotel acquisitions like Tree of Life and will build a 250 room luxury hotel in Mumbai

To speed up growth, IHCL is in talks to buy a chain of boutique hotels. "A chain such as Tree of Life Resorts & Hotels fits into our growth strategy," said Chandrasekaran. IHCL joined forces with Tree of Life in 2024 and got access to 16 boutique hotels in picturesque locations such as Dharamshala, Manali, Kumaon, and Mussoorie.

READ MORE: IHCL Unveils Taj Damdama Lake Resort Gurugram to Accelerate Expansion

One of the most important strategic changes will involve IHCL concentrating on management deals instead of outright ownership of assets. "Around 7–8 years back, barely 5% of our hotels were managed through contracts. We now intend to turn the ratio around so that we have 60–65% of our hotels managed through such contracts," Chandrasekaran said.

Among its big bets is a ₹2,500 crore luxury hotel adjacent to the Taj Land's End in Mumbai. This wholly owned 250-room hotel is a classic example of IHCL's strategy of building marquee properties and running most others.

IHCL's announcement comes at a time of increasing competition from international brands such as Marriott, which is growing fast in India as well.