What Drove Results at IHCL, Indian Hotels Company

Indian Hotels Company Limited (IHCL) reported its highest-ever full-year performance in fiscal 2025, driven by solid domestic travel demand and limited additions to hotel supply.

“Strong domestic business travel demand, coupled with mega wins like the Kumbh Mela, international music concerts like Coldplay and a strong wedding season, were the key demand drivers this year,” IHCL CEO Puneet Chhatwal said at an earnings call on Monday. 

Those factors helped room-night sales grow 6% industry-wide, even as new room supply expanded by less than 3% year-on-year, allowing hotels in the country to fill more beds at higher rates.

IHCL re-affirmed its “Accelerate 2030” vision to operate 700 properties by the decade’s end. The company had 74 new signings and opened 26 hotels last year, from luxury flagships under the Taj banner to mid-market stays with Ginger and Vivanta. 

Chhatwal said the company plans to invest over INR 12 billion (approximately $142 million) in fiscal 2026. This includes asset upgrades, new projects, and investments focused on the Taj brand and digital infrastructure.

Reviving the Inbound Story

While domestic tourism has been strong, India has struggled to lift inbound tourism, an issue that Skift and Skift Research have documented.

Now, IHCL is placing more emphasis on attracting international travelers. Referencing projections of 28 million foreign arrivals by 2030 — a nearly 40% increase over pre-pandemic levels—Chhatwal noted the potential for growth in inbound tourism.

The company has allocated INR 250 million ($3 million) over three years to promote India abroad. IHCL is also offering more flexible booking policies and inclusive pricing to encourage travel agents to increase inbound bookings.

The Last-Minute Traveler, Loyalty, and Direct Bookings

One insight that has resonated through 10 straight quarters: booking windows are shrinking. Outside peak seasons, like school holidays, summer breaks and Christmas holidays, Indian travelers are planning getaways as little as 12–24 hours in advance, Chhatwal said.

Post-pandemic shifts toward spontaneous, self-driven road trips have driven this “last-minute” phenomenon, and IHCL expects this to persist as Indians travel more than ever before.

Beyond its core hotels, IHCL’s “new and reimagined” ventures are scaling fast.

Qmin, the company’s grab-and-go food concept spun off from Ginger, has expanded to 72 outlets.  In addition to serving the F&B brand for Ginger Hotels, Qmin has also established a presence in retail through its partnership with WestSide stores in Mumbai and Bengaluru in a shop-in-shop format. Qmin has also launched at Chennai, Kolkata and Bengaluru Airports in partnership with TFS. 

IHCL’s loyalty program Tata Neu surpassed 10 million members in fiscal 2025. Also, bookings made via direct channels jumped 43% to over INR 22 billion ($261 million), highlighting the growing appeal of an integrated, app-centric loyalty ecosystem.

IHCL Financials

• Revenue: Consolidated total revenue surged 23% year-on-year to INR 85.6 billion ($1,016 million) for fiscal 2025, with the fourth-quarter revenue climbing 27% to INR 25 billion ($295 million).
• EBITDA: EBITDA for fiscal 2025 reached a record INR 30 billion ($356 million), up 28% from the previous year, while the corresponding fourth quarter figure rose 30% to INR 9.2 billion ($109 million). Overall EBITDA margin expanded to 35% for the year and 37% for the quarter.
• Profit After Tax: Profit after tax jumped by 63% to INR 19.6 billion ($233 million) for fiscal 2025 (including a one-off exceptional gain of INR 3 billion ($36,2 million). The fourth quarter PAT increased 37% to INR 5.4 billion ($64 million).

Accommodations Sector Stock Index Performance Year-to-Date

What am I looking at? The performance of hotels and short-term rental sector stocks within the ST200. The index includes companies publicly traded across global markets, including international and regional hotel brands, hotel REITs, hotel management companies, alternative accommodations, and timeshares.

The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. See more hotels and short-term rental financial sector performance.

Read the full methodology behind the Skift Travel 200.