The Tata group owned Indian Hotels Company Limited IHCL will have a huge thrust on being only in the high EBITDA margin businesses. This will be part of an initiative called Ahvaan 2025. According to Puneet Chhatwal, MD and CEO, IHCL, the goal is to get to a level of 33 per cent at the consolidated level with new properties such as the upcoming Ginger in Mumbai s Santacruz expected to hit 55 per cent.
Our revenues fell because of the Pandemic, but we also figured out ways to reduce costs. The roadmap for Ahvaan 2025 shows that IHCL will expand its portfolio to over 300 hotels. There will be 100 Taj properties, 75 Vivanta and Seleqtions and 125 Ginger. The goal is to become a zero-debt company.
Chhatwal said business trips are now longer leading to higher occupancy levels.
Our priority is to be a premium player in every segment we operate in. He said that there was a huge opportunity in increasing our EBITDA levels and over time, 30 per cent of the revenue will come from the new businesses.
In a report released on May 24, IDBI Capital said: We believe that the hotel industry rebounded after the hiccup of the third wave of Covid 19 and the growth across segments is encouraging. IHCL, as the industry leader, is in a sweet spot to benefit from improving industry trends. The company is looking at 18 -- 20 openings in the current year.
IHCL is known for its marquee properties such as Taj Mahal in Mumbai and Taj Mansingh in Delhi. Our international business is doing well with properties in prime locations. Chhatwal said that acquisitions were not priority and that we would like to have one iconic asset in Europe through a management contract or revenue share.