IHCL Aims for 30% Margin in FY25: Plans 10-12 Ginger Hotels Monthly

IHCL anticipates 10% revenue growth and strong bookings for July and August. CEO Puneet Chhatwal aims for a margin target of over 30% to solidify the company's industry leadership.

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Ginger Hotels is an Indian midscale brand owned by Indian Hotels Company Limited (IHCL)

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Indian Hotels Targets Growth: 30% Margin, New Ginger Hotels

The Indian Hotels Company (IHCL) is cautiously optimistic about its growth prospects for this year despite a slow start due to election-related restrictions, extreme weather, and a decrease in weddings and events. Puneet Chhatwal, MD & CEO, expects a 10% revenue growth for the year, with solid bookings anticipated for July and August. He has set a margin target of over 30%, which, if achieved, will position the company as a global industry leader.

Puneet Chhatwal - Managing Director & Chief Executive Officer, IHCL

Chhatwal emphasized that a 10% to 15% revenue increase is considered good, particularly if it comes from key sources like room revenue and the wedding business. Due to the fixed cost base, this translates into incremental profitability.

IHCL plans to open 25 new hotels in FY25, adding 10-12 Ginger hotels per month

IHCL plans to open 25 new hotels in FY25, with a monthly addition of 10-12 Ginger hotels. The Indian Hotels stock has seen a 61% increase year-on-year and a 40% increase year-to-date, but it has experienced a recent 10% decline from its highs. IHCL operates hotels in India and international markets such as the US, London, and Cape Town. Chhatwal also emphasized the growing importance of digital and artificial intelligence, stating that adopting these technologies as enablers will become essential in the long run. He highlighted the significance of digital-driven businesses like Ginger, Ama, and Qmin, leading IHCL's digital transformation. The current market capitalization of this Indian hospitality company is ₹87,149.6 crores.

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