Indian Hotels Co. Ltd. · NSE:INDHOTEL
Indian Hotels — The Indian Hotels Company — Morgan Stanley India Investor Forum 2024
47 slides from Indian Hotels's conference presentation, Jun 13, 2024
Slide 1: Intimation of Analysts/Institutional Investors Meeting Presentation
June 13, 2024 BSE Limited National Stock Exchange of India Limited Corporate Relationship Department Exchange Plaza 1st Floor, New Trading Ring, Bandra Kurla Complex Rotunda Building, P. J. Towers, Bandra (E) Dalal Street, Fort, Mumbai 400 051 Mumbai – 400 001. Scrip Code: INDHOTEL Scrip Code: 50085
Slide 2: Raising the Bar. Setting New Benchmarks.
RAISING THE BAR. SETTING NEW BENCHMARKS. MORGAN STANLEY INDIA INVESTOR FORUM | 13th June 2024
Slide 3: World's Strongest Hotel Brand 2024
WORLD’S STRONGEST HOTEL BRAND 2024 (2022, 2021) 2
Slide 4: India Growth Story: Fastest Growing Economy
INDIA GROWTH STORY FASTEST GROWING ECONOMY Rank CY'27 GDP ($tr) 1 US US US US US US US US $31.5tr 2 JP JP CH CH CH CH CH CH $23.6tr 3 GR GR JP JP JP GR GR IN $5.4tr 4 UK UK GR GR GR JP IN GR $5.3tr 5 FR CH FR UK UK IN JP JP $4.9tr 6 CH FR CH FR IN UK UK UK $4.3tr 7 IT IT UK IN FR FR FR FR $3.5tr 8 C
Slide 5: Strong Demographic Dividend: The Rise of Affluent India
STRONG DEMOGRAPHIC DIVIDEND THE RISE OF AFFLUENT INDIA Population (mn) With Income > USD 10,000 Increase/Decrease in age (30-60) population by 2045 (% Change) 100 28 17 60 10 3 3 2 37 20 24 India Australia US Brazil UK Vietnam Thailand Europe China Japan Taiwan -14 -15 -18 2011 2015 2019 2023 2027E
Slide 6: Premiumization Playing Out Across Sectors
PREMIUMIZATION PLAYING OUT ACROSS SECTORS i-Phone shipments to India (Mn) UV vs PV demand profile % 10 28 34 39 49 52 7 57 5 4 72 66 61 2 2 51 48 43 CY18 CY19 CY20 CY21 CY22 CY23 2018 2019 2020 2021 2022 2023 Passenger Vehicles (incl. vans) SUVs Source: Jefferies Dramatic increase in 60% of cars sol
Slide 7: India A Land of Opportunities
Srinagar Manali Dharamshala Katra Naggar Jammu Shimla Mussoorie INDIA A LAND OF Chandigarh Rishikesh Sirmaur Dibrugarh Tawang Itanagar Dehradun Nainital OPPORTUNITIES Udaipurwati Haridwar Binsar Corbett Pantnagar Darjeeling Pushkar Guwahati Kumbhalgarh 6 major mountain ranges Naukuchiatal spread acr
Slide 8: India A Land of Opportunities
INDIA A LAND OF OPPORTUNITIES 7,500+ km. of Coastline Kolkata 500+ beaches Dwarka Bharuch Raichak Vapi Puri Thane Mumbai Alibagh Vizag 80+ Candolim hotels Mangalore Chennai Havelock 30+ Kadmat Bekal Kumarakom Pondicherry locations Suheli Calicut Ernakulam Varkala Cochin Trivandrum Kollam Kovalam
Slide 9: India A Land of Opportunities
Vaishno Devi Srinagar INDIA A LAND OF Katra Dharamshala OPPORTUNITIES Amritsar Rishikesh Chandigarh Haridwar Vaishno Devi Mandir Ram Mandir, Ayodhya Golden Temple, Amritsar Gurugram New Delhi Tawang 3+ million Jaipur Vrindavan Agra Lucknow Ayodhya Pakyong Gangtok Guwahati Ajmer places of worship Gan
Slide 10: India A Land of Opportunities
INDIA A LAND OF OPPORTUNITIES Yashobhoomi, Dwarka Bharat Mandappam, New Delhi New Delhi Ahmedabad Presence in Tier – 1 Kolkata Cities – MICE Demand Mumbai Pune ~ 75 hotels Hyderabad Jio World Convention Taal Kutir, Kolkata 8 Centre, Mumbai Bangalore Chennai Metro cities of India
Slide 11: India A Land of Opportunities, Significantly Underpenetrated
INDIA A LAND OF OPPORTUNITIES, SIGNIFICANTLY UNDERPENETRATED IMMENSE OPPORTUNITIES BUT, SIGNIFICANTLY UNDERPENETRATED Naturally Endowed GLOBAL USA CHINA INDIA Himalayan mountain range Branded Room Supply 18 5.6 4.5 0.2 One of the longest coastline (mn.) 100+ National Parks Population (mn.) 8,045 340
Slide 12: Upcycle to Be a Long & Sustained One
UPCYCLE TO BE A LONG & SUSTAINED ONE Rooms Demand CAGR 6.4% 2016-2023 Business Travel Leisure Travel 10.6% 2024-2027 MICE/Weddings Airline Crew/ Transit Demand Source: Horwath HTL Demand Growth to Continue Outpacing Supply Growth 11
Slide 13: IHCL Well Placed to Capitalize on Demand Across Segments
IHCL WELL PLACED TO CAPITALIZE ON DEMAND ACROSS SEGMENTS 150 mn. Taj Palaces & Iconic High Properties 2 50 mn. Taj Product/ Service Offering 1 SeleQtions Medium Vivanta Ginger 1 Tree of Life 600 mn. Low 2 Gateway Low Medium High Price Positioning 12
Slide 14: IHCL A Story of Aspiration, Execution & Performance
IHCL A STORY OF ASPIRATION, EXECUTION & PERFORMANCE ASPIRATION TO RESET DURING SIGHTS ON THE EXECUTION COVID-19 FUTURE CONSISTENT EMERGING AHVAAN PERFORMANCE STRONGER 2025 13
Slide 15: We Promised Profitability, We Delivered Record Performance
WE PROMISED PROFITABILITY, WE DELIVERED RECORD PERFORMANCE 14
Slide 16: Record Financial Performance Complete Turnaround
RECORD FINANCIAL PERFORMANCE COMPLETE TURNAROUND Revenue EBITDA Margin PAT Cash Reserves ₹7,000 Cr 33.7% ₹1,250 Cr ₹2,200+ Cr Loss to Debt to 70% 2x Profit Cash ₹ 4,000 Cr 16.3% (₹ 60 Cr) (₹ 2,000+ Cr) Comparison of FY 2023-24 vs. FY 2016-17 Note: All figures for Consolidated financials. Numbers rou
Slide 17: 8 Consecutive Quarters of Record Financial Performance
8 CONSECUTIVE QUARTERS OF RECORD FINANCIAL PERFORMANCE (₹ Crore) 2,004 1,951 1,516 1,744 1,655 1,481 1,293 1,258 772 706 459 655 565 402 405 319 Q1 2022-23 2023-24 Q2 2022-23 2023-24 2023-24 Q3 2022-23 Q4 2022-23 2023-24 Consol. Revenue EBITDA 16
Slide 18: What We Expect as We Go Into Next Year?
WHAT WE EXPECT AS WE GO INTO NEXT YEAR ? DOUBLE DIGIT ASSET MANAGEMENT NOT LIKE FOR LIKE GROWTH : +30% CONSOLIDATED REVENUE GROWTH DRIVING PROFITABILITY 17
Slide 19: We Promised a Re-imagined Brandscape, We Delivered Performance Across Brands
WE PROMISED A RE-IMAGINED BRANDSCAPE, WE DELIVERED PERFORMANCE ACROSS BRANDS 18
Slide 20: We Continued to Invest Strongly in Brand-Building
WE CONTINUED TO INVEST STRONGLY IN BRAND-BUILDING 19
Slide 21: Re-imagining Existing Brands, Introducing New Concepts
RE-IMAGINING EXISTING BRANDS, INTRODUCING NEW CONCEPTS RE-IMAGINING EXISTING BRANDS Present across 9 flagship hotels Present in 60 hotels Delhi, Bhopal, Jaipur, London Cape Town, Dubai, London, Singapore INTRODUCING NEW CONCEPTS Mumbai, Delhi, Bangalore Goa, Bangalore Goa New Delhi 20
Slide 22: Re-imagined Ginger Delivering Results
RE-IMAGINED GINGER DELIVERING RESULTS ₹ 486 Cr Revenues Growth of 34% YoY 68% Hotels now Lean Luxe 53% EBITDAR Margin (Lean Luxe) 1 pp Margin Expansion YoY All figures for FY24 21
Slide 23: Ginger Mumbai Airport Delivered Revenue ₹25+ Cr, EBITDA Margin 47%
GINGER MUMBAI AIRPORT DELIVERED REVENUE ₹25+ Cr, EBITDA MARGIN 47% Performance Success Drivers ₹ 6,700+ Value ARR Proposition – Lean Luxe 80% Occupancy Location PBT Positive from Month 1 Strong F&B: 25% of Revenue No Cannibalization driven by Qmin at the cost of other IHCL hotels * All figures for F
Slide 24: Qmin Showcasing Growth Across Formats
QMIN SHOWCASING GROWTH ACROSS FORMATS Asset Light Growth: ₹ 100+ Cr GMV Key Imperatives FY 23-24 Qminization of Ginger 47% Strategic Alliances Delivery, Shops, QSR Delivery: Online & Offline Profitable Growth 53% Qmin in Ginger Hotels 23
Slide 25: amã on a Growth Journey
amã ON A GROWTH JOURNEY Poised to Hit 200+ 100+ Portfolio Operational 103 Signings (FY24) 200 114 40 Openings (FY24) 80 20 38 Mar'20 Mar'21 Mar'22 Mar'23 Mar'24 Operational Pipeline 24
Slide 26: Re-imagined TajSATS Continues Delivering Record Performance
RE-IMAGINED TajSATS CONTINUES DELIVERING RECORD PERFORMANCE All figures for FY24 ₹ 900 Cr 25.5% Revenues EBITDA Margin Growth of 5.8 pp 40% YoY Margin Expansion ₹ 230 Cr EBITDA 60% Market Share Growth of (by no. of meals) 82% YoY 25
Slide 27: New Brands and Re-imagined Businesses Growing at 2x of Core Enterprise Revenues
NEW BRANDS AND RE-IMAGINED BUSINESSES GROWING AT 2x of CORE ENTERPRISE REVENUES New & Re-Imagined Businesses Enterprise Revenue Core Enterprise Revenue Growth YoY Growth YoY 35 % 17 % 26
Slide 28: What We Expect as We Go Into Next Year (New Businesses)
WHAT WE EXPECT AS WE GO INTO NEXT YEAR (NEW BUSINESSES) CONSISTENT 30%+ GINGER BRAND LEVEL REVENUE TAJ SATS REVENUE GROWTH RATES LIKELY INR 600 Cr + LIKELY INR 1,000 Cr + QMIN IN ALL GINGERS amã : 2X REVENUES, OWNED INVENTORY QMIN GMV LIKELY INR 125 Cr + TO CROSS 7% OF TOTAL 27
Slide 29: We Promised Growth, We Delivered Unprecedented Expansion
WE PROMISED GROWTH, WE DELIVERED UNPRECEDENTED EXPANSION 28
Slide 30: Portfolio Growth Achieved 300+ Hotels Milestone
PORTFOLIO GROWTH ACHIEVED 300+ HOTELS MILESTONE 113 89 322 222 + 100 91 Operational Pipeline 13 16 As on 31st May 2024 29
Slide 31: Focus on Global Prominence, Domestic Dominance
FOCUS ON GLOBAL PROMINENCE, DOMESTIC DOMINANCE 200+ HOTELS OPERATIONAL IN INDIA 2 1 3 Chitwan Kathmandu Bhutan 2 180+ 1 1 Frankfurt London Hotels signed in last 6 years San Francisco 1 Riyadh 1 2 NYC 1 297 Dhaka Makkah 2 3 Colombo 1 Dubai 1 Lusaka 2 Bentota IHCL is now present in Maldives 4 Continen
Slide 32: Highest-Ever Signings and Openings in a Single Year
HIGHEST-EVER SIGNINGS AND OPENINGS IN A SINGLE YEAR 12 10 11 6 14 53 On an average, 1 new hotel signed every week in FY 2023-24 5 6 3 6 14 34 31
Slide 33: What We Expect as We Go Into Next Year (Portfolio Growth)
WHAT WE EXPECT AS WE GO INTO NEXT YEAR (PORTFOLIO GROWTH) OPEN 2+ HOTELS LEVERAGE STRATEGIC CASH RESERVE FOR ACCELERATE GROWTH IN TIER 2 & TIER 3 A MONTH CAPEX AND NEW BUSINESS SUPPORT CITIES – RELAUNCH OF GATEWAY 32
Slide 34: We Promised Iconic Hospitality, We Delivered World-Class Customer Centricity
WE PROMISED ICONIC HOSPITALITY, WE DELIVERED WORLD-CLASS CUSTOMER CENTRICITY 33
Slide 35: Superior Service Excellence, Recognized Globally
SUPERIOR SERVICE EXCELLENCE, RECOGNIZED GLOBALLY World’s Finest Rambagh Palace Nominated in the Favourite Indian Heritage Hotel Luxury Grand category of Palaces Taj Madikeri Resort & Spa, Coorg “Best Hotel Best Hotels and Resorts in Asia Brands” NeuPass TRAVEL + LEISURE Best Loyalty Program World’s
Slide 36: Unparalleled Customer Satisfaction Highest-Ever NPS Scores
UNPARALLELED CUSTOMER SATISFACTION HIGHEST-EVER NPS SCORES 74.26 73.01 69.40 68.50 67.30 67.19 66.41 66.00 64.90 63.65 FY 2018/19 FY 2019/20 FY 2021/22 FY 2022/23 FY 2023/24 35
Slide 37: Loyalty Re-imagined: Tata Neu
LOYALTY RE-IMAGINED TATA NEU Total loyalty led revenue ₹ 3,450 Crore + 36% Growth vs. FY23 2,506 429 202 313 Copper Silver Gold Platinum Loyalty contribution Total Members to enterprise revenue 29% 5.3 Mn. Loyalty Led Revenues is the revenue generated by Loyalty customers through all channels Out of
Slide 38: Enabled by Focus on Culture
ENABLED BY FOCUS ON CULTURE 37
Slide 39: Living the IHCL Values
LIVING THE IHCL VALUES TATA VALUES VALUES Excellence Trust Awareness Joy Integrity Unity Pioneering Responsibility 38
Slide 40: Culture of Camaraderie Celebrating Spirit of Tajness
CULTURE OF CAMARADERIE CELEBRATING SPIRIT OF TAJNESS 39
Slide 41: Doing Business, the Responsible Way
DOING BUSINESS, THE RESPONSIBLE WAY PRESERVE PROMOTE Heritage & Brand Environmental Stewardship PROGRESS PROMISE Sustainable Growth Social Responsibility PA R T N E R PRUDENT Transformation Corporate Governance 40
Slide 42: PAATHYA Goals
PAATHYA GOALS 2030 GOALS 100% 100,000 50% 100% Waste Water Youth Energy from Hotels Recycled / Reused Skilled for Livelihood Renewable Sources EarthCheck Certified 100% 100% 100% Hotels go Beyond Adoption of UNESCO’s Intangible Business Meetings & Single-Use Plastic Free Cultural Heritage projects i
Slide 43: PAATHYA Milestones Achieved
PAATHYA MILESTONES ACHIEVED Waste FY 23/24 UPDATE 100% elimination of single-use plastic 241 Tons of Plastic Saved through Glass Bottles, Bio-degradable Bathroom Amenities, Paper Straws Waste 100% operating hotels will have an organic waste management system 40 hotels have bottling plants to elimina
Slide 44: In Summary We Will Continue to Focus On
IN SUMMARY WE WILL CONTINUE TO FOCUS ON : Consistent Sustained Double-digit Portfolio Growth Topline Growth Strong Evolution of Brandscape Balance Sheet & Free Cash Flow New Businesses to deliver growth of 30%+ 43
Slide 45: We Promised, We Delivered
WE PROMISED WE DELIVERED Ahvaan Achieved Target Till Date ICONIC AND PROFITABLE HOSPITALITY COMPANY Margin 33% 33.7% RE-ENGINEER MARGINS RE-IMAGINE RE-STRUCTURE BRANDSCAPE PORTFOLIO Net Debt Zero Cash ₹ 2,200+ Crs CULTURE ONE TATA EXCELLENCE ORGANIZATION DIGITAL PAATHYA Portfolio 300+ 322 INTEGRITY,
Slide 46: Disclaimer
DISCLAIMER These presentations may contain forward-looking statements within the meaning of applicable securities laws. Similarly, statements that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. Forward-looking statements are not g
Slide 47: Raising the Bar. Setting New Benchmarks.
RAISING THE BAR. SETTING NEW BENCHMARKS. MORGAN STANLEY INDIA INVESTOR FORUM | 13th June 2024
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