Skift Take

IHCL's strategic focus on Tier 2 and Tier 3 cities indicates a market expansion aligning with India's burgeoning middle class. While this helps meet evolving consumer demands it also ensures that the company grows beyond metropolitan areas.

Peden Doma Bhutia

Indian Hotels Company (IHCL) looks to open an average of 2 hotels per month or even more in fiscal year 2024-2025, Puneet Chhatwal, managing director and CEO of IHCL, announced during an earnings call on Friday.

The hotel company is gearing up for an accelerated pace of growth in the fiscal year 2024-2025 with 85 hotels in the pipeline.

IHCL is also set to introduce two new brands within the next six months, primarily targeting Tier 2 and Tier 3 cities. Chhatwal emphasized that these new brands and businesses align with IHCL's asset-light strategy, "contributing to margin expansion and reducing vulnerability to business fluctuation." (More details on the new brands below)

In the current fiscal year, IHCL has already signed 28 hotels with 16 hotels already operational. Chhatwal revealed plans to add four more hotels in February and March.

The Numbers

The company's asset-light model has resu