Indian Hotels Co. Ltd. · NSE:INDHOTEL
Indian Hotels — The Indian Hotels Company — Ambit Travel Ecosystem Conference 2024
39 slides from Indian Hotels's conference presentation, Dec 12, 2024
Slide 1: From Aspiration to Acceleration
FROM ASPIRATION TO ACCELERATION AMBIT TRAVEL ECOSYSTEM CONFERENCE | 12TH DECEMBER 2024 1
Slide 2: Hospitality sector in an upcycle, driven by strong domestic demand
HOSPITALITY SECTOR IN AN UPCYCLE, DRIVEN BY STRONG DOMESTIC DEMAND AND FAVORABLE DEMOGRAPHICS India’s Economic Growing Middle Rising Disposable Strong Demand FTA Recovery & Growth Class Incomes Growth Growth $7 Tn 31% → 38% ↑50% 9-11% 25 Mn DEMAND 3rd Largest Economy of popn. from ‘24 to ’30 Disp. I
Slide 3: India a Land of Opportunities: mountains
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 4: India a Land of Opportunities: coastline
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 4
Slide 5: India a Land of Opportunities: places of worship
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 6: India a Land of Opportunities: metro cities
INDIA A LAND OF OPPORTUNITIES Yashobhoomi, Dwarka Bharat Mandappam, New Delhi New Delhi Ahmedabad Presence in Tier – 1 Cities – Kolkata MICE & Business Travel Demand Mumbai Pune ~ 75 hotels Hyderabad Jio World Convention Taal Kutir, Kolkata 8 Centre, Mumbai Bangalore Chennai Metro cities of India 6
Slide 7: IHCL's Story of Transformation 2017-2024
IHCL’s STORY OF TRANSFORMATION 2017-2024 P&L BALANCE SHEET BRANDSCAPE GROWTH Rev. ₹ 4,000 Cr Net Debt # Portfolio 155 Where We Were EBITDA 16% ₹ 3,000+ Cr in 2017 # Operational 142 ROCE 5% # Pipeline 13 PAT (₹ 63 Cr) Where We Rev. ₹ 7,000 Cr Net Cash # Portfolio 350 Are Today EBITDA 33%[1] ₹ 2,000 C
Slide 8: Created to Make India Proud
CREATED TO MAKE INDIA PROUD 120 YEARS LATER STILL SERVING THE DREAM WORLD'S INDIA'S STRONGE STRONGEST HOTEL BRAND 2 BRAND 2024 2022 2023 | 2022 | 2020
Slide 9: 10 Consecutive Quarters of Record Financial Performance
10 CONSECUTIVE QUARTERS OF RECORD FINANCIAL PERFORMANCE (₹ Crore) Growth YoY 2,004 1,951 1,890 ↑15% ↑18% 1,516 1,596 ↑28% 1,481 ↑5% ↑17% ↑18% 772 706 ↑18% 496 565 459 402 ↑25% ↑8% ↑41% ↑13% ↑26% Q1 2023-24 Q2 2023-24 Q3 2023-24 Q4 2023-24 Q1 2024-25 Q2 2024-25 Consol. Revenue EBITDA *Q2FY25 includes
Slide 10: IHCL Well Positioned to Shape the Future
IHCL WELL POSITIONED TO SHAPE THE FUTURE ₹ IHCL Hospitality Industry Macro-economic Industry-leading Performance Strong Demand, The India Growth Story Industry-leading Brands Immense Growth Potential Differentiated Strategy 10
Slide 11: Industry Leading Portfolio of 350 Hotels
INDUSTRY LEADING PORTFOLIO OF 350 HOTELS 232 OPERATIONAL HOTELS , 118 IN PIPELINE 121 Operational Network Pipeline IHCL Share of Branded Rooms in India 100 39 17% 30 50 12% IHCL share of Pipeline 38 IHCL (Active supply) 82 20 share of 13 22 70 19 Existing Branded 2 Rooms 25 30 14 8 17 Data as on 31s
Slide 12: Summary 2030 Goals
SUMMARY 2030 GOALS PORTFOLIO OPERATIONAL REVENUE BALANCE SHEET ₹ 13,000 Cr 15% Enterprise Revenue ROCE Where We Are 350 232 In 2024 Hotels Hotels ₹ 7,000 Cr ₹ 2,000 Cr Consol. Revenue Net Cash ₹ 30,000+ Cr 20%+ Where We Enterprise Revenue ROCE* Want To Be 700+ 500+ In 2030 Hotels Hotels ₹ 15,000+ Cr
Slide 13: 2030 Goals: Target to More Than Double the Portfolio
2030 GOALS TARGET TO MORE THAN DOUBLE THE PORTFOLIO PORTFOLIO INCL. PIPELINE OPERATIONAL HOTELS BRANDS Oct-24 Mar-30 Oct-24 Mar-30 Steady Growth Brands 15 Signings p.a 209 300 137 225 (Taj, SeleQtions, Vivanta) 15 Openings p.a Accelerated Growth Brands 141 400 95 275 50 Signings p.a (Gateway, Ginger
Slide 14: Where to Play: Domestic Markets
WHERE TO PLAY DOMESTIC MARKETS LEADERSHIP IN THE INDIAN SUBCONTINENT ACROSS ALL SEGMENTS BRANDS KEY MARKETS* TIER 2 / 3 CITIES DRIVABLE DESTINATIONS DISTRICT HEADQUARTERS LEISURE LOCATIONS ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Efficient Capital Deployment to Cover White Spaces in Brandscape, Themes
Slide 15: Where to Play: International Markets
WHERE TO PLAY INTERNATIONAL MARKETS ROUTE TO INTERNATIONAL GROWTH BRANDS MIDDLE EAST S.E.A & SOUTH ASIA WESTERN HEMISPHERE REST OF THE WORLD Deepen presence in Build Destination Presence in key gateway destinations the region Itineraries Opportunity based e.g. Dubai, Bahrain, e.g. Singapore, e.g. Pa
Slide 16: Latest Addition to Our Brandscape
LATEST ADDITION TO OUR BRANDSCAPE Opportunity to grow with a Landmark Hotel in Lutyens’ Delhi Differentiated Offering in Luxury Space Brand License for Opportunity in micro-markets for ‘The Claridges’ & Branded Residences ‘Claridges Collection’ for India & Nepal 16
Slide 17: Consolidated Revenue Double Digit Growth to Sustain
CONSOLIDATED REVENUE DOUBLE DIGIT GROWTH TO SUSTAIN FY30 Revenue Potential 15,000+ CAGR 14%+ 2x+ REVENUE on the back of • Long Term Demand Tailwinds • Limited Supply resulting in CAGR 8% favorable demand supply balance IHCL • Accelerated Not like for like Consol. growth Topline 7,000 (₹ Cr) 4,000 FY
Slide 18: Strategic Drivers for Accelerated Revenue Growth
STRATEGIC DRIVERS FOR ACCELERATED REVENUE GROWTH 2 3 Management Fee expected CAGR Continued Momentum of of 15-18%, primarily driven by Net New Businesses (2) 3 Unit Growth (Expected CAGR 30%+) 4 Reimagined TajSATS & 1 Traditional Business (1) driven by TRevPAR growth, Asset Chambers growth Managemen
Slide 19: Like for Like RevPAR CAGR Momentum to Continue
1 LIKE FOR LIKE (LFL) REVPAR CAGR MOMENTUM TO CONTINUE TRADITIONAL BUSINESS 25,000 Growth Momentum to Continue CAGR 8% Like for Like RevPAR growth of High single digit 20,000 Growth for existing assets driven by Asset Management interventions & Sector Growth ₹ / Night YTD Oct 15,000 Growth 8% 11,000
Slide 20: Limited Supply in Active Development Across Key Cities
1 LIMITED SUPPLY IN ACTIVE DEVELOPMENT ACROSS KEY CITIES NEW DELHI CAGR FY24 vs FY19 CAGR FY29 vs FY24 KOLKATA 2.2% (Actual) (Projected) 6.6% 0.2% 4.4% RAJASTHAN(1) 8.3% ALL INDIA 6.7% Branded Inventory 6.9% 6.6% MUMBAI BENGALURU 3.8% 4.5% 3.5% 4.0% GOA CHENNAI 9.1% 1.9% 1.6% 6.0% (1) Includes data
Slide 21: ARRs in India Room for Growth
1 ARRs IN INDIA ROOM FOR GROWTH ARR still significantly below ARRs need to keep growing for justifying fresh investments previous peak in Dollar terms IHCL Standalone Industry (1) (Five star) $267 Current Green Field Industry(1)ARR Capex/ Room* $190 $185 (Deluxe) $106 LUXURY ₹ 15,500 ₹ 3.5 – 4.0 Cr
Slide 22: Asset Management & Repositioning of Our Key Assets
1 ASSET MANAGEMENT & REPOSITIONING OF OUR KEY ASSETS PROTECTING AND POLISHING OUR CROWN JEWELS TAJ MAHAL, NEW DELHI TAJ USHA KIRAN PALACE, GWALIOR (Reopened in 2023) (Reopened in 2024) ₹ Cr ₹ Cr Turnover 300+ Turnover 25+ 162 CAGR 14% 10 CAGR 20% FY20 FY25(Est) FY20 EBITDAR EBITDAR FY25(Est) CAGR 26
Slide 23: New Business: Qmin and Ginger Driven by Capital Light Growth
2 NEW BUSINESS: QMINIZED LEAN LUXE GINGER DRIVEN BY CAPITAL LIGHT GROWTH 12-15% INVESTMENT MODEL INVESTMENT MODEL • Capital light Variable Leases • Capital light growth approach Qmin Stores & QSR • Select assets on Balance sheet • Qmin Delivery App synergized through • Limited Management contracts u
Slide 24: Rapidly Scaling Up New Concepts: amã, Trails & Tree of Life
2 RAPIDLY SCALING UP NEW CONCEPTS amã STAYS & TRAILS & TREE OF LIFE INVESTMENT MODEL INVESTMENT MODEL • Management Contracts • Growth through Capital • Only select few on Balance Light leases & sheet (currently 15 in Management Contracts portfolio) Portfolio of 2024 Portfolio of Launched in 750+ Str
Slide 25: Management Fee to Grow: Increasing Share of Capital Light Inventory
3 MANAGEMENT FEE TO GROW INCREASING SHARE OF CAPITAL LIGHT INVENTORY 44% Managed Inventory 60% Managed Inventory 75% Managed Inventory 26% 43% 57% FY17 FY24 FY30 Capital Heavy Capital Light 12%-15% CAGR Management Fee 8% 13,000 expected to cross NET UNIT 7,436 CAGR GROWTH ₹ 1,000 Cr MANAGED HOTEL RO
Slide 26: The Chambers Strong Value Proposition
4 THE CHAMBERS STRONG VALUE PROPOSITION 9 ICONIC LOCATIONS NEW DELHI INDIA & INTERNATIONAL KOLKATA New Chambers MUMBAI at the upcoming Taj Frankfurt (FY26) HYDERABAD BENGALURU CHENNAI DUBAI LONDON 26
Slide 27: TajSATS Transformation Journey
4 TAJ SATS TRANSFORMATION JOURNEY CONSOLIDATION WEF FROM JULY 23, 2024 Turnover Expansion ₹ Crore Amritsar Delhi New Kitchen NOIDA (WIP) New NEKTA Kitchen Gurugram Kolkata 2X+ Expansion Mumbai 900 New Kitchen MOPA Strategic Steps to PROPEL 350 Bangalore EXPANSION FY17 FY24 FY30 Potential Expanding c
Slide 28: Leading to a Diversified Consolidated Revenue Mix
LEADING TO A DIVERSIFIED CONSOLIDATED REVENUE MIX 4% 6% 7- 1% 2% 10% 4% 12- 14% 6% 15- 18% FY17 FY24 FY30 60- 91% 86% 65% Traditional Business New Business Re-imagined Business Management Fee (TajSATS & Chambers) 28
Slide 29: EBITDA Drivers Supported by Productivity, Scale & Mix
EBITDA DRIVERS SUPPORTED BY PRODUCTIVITY, SCALE & MIX Standalone EBITDA 23% 31% 41% 35% 38% KEY EBITDA Drivers Margins › Operating leverage & efficiency › Improvement in Performance of 33% 30% International Assets (EBITDA Margin up 29% 140 bps in H1 FY25) › Favorable revenue mix change 24% › D2C cha
Slide 30: Capital Allocation Principles
CAPITAL ALLOCATION PRINCIPLES Cash accrual IHCL for New Projects, EBITDA Free Cash flow Renovations, Dividend Future Inorganic CONSOLIDATED before Capex Ongoing New Builds Greenfields Opportunities & & Digital Capex Strategic Reserve % OF EBITDA 100% 70 - 75% 20% - 25% 12% - 15% 15% - 20% 10% – 20%
Slide 31: Investing to Strengthen & Build Future Moats
INVESTING TO STRENGTHEN & BUILD FUTURE MOATS Identified Capex spend of upto ₹ 5,000 Cr over next 5 years Taj Cochin Airport Key Digital (Q4 FY25 - 112 Keys) Renovations Spends Vivanta & Ginger, Ekta Nagar (H2 FY26 - 275 Keys) Room ERP Upgrade Renovations Taj Hessischer Hof, Frankfurt Ongoing (Q4 FY2
Slide 32: Key Company Owned Projects Making Progress
KEY COMPANY OWNED PROJECTS MAKING PROGRESS Bandstand Lakshadweep Shiroda Aguada Plateau Ekta Nagar Goa MOPA (Sea Rock) Suheli - 70 Keys 300 Keys 110 Keys 275 Keys 300 Keys 400 Keys Kadmat - 110 Keys FSI crystallized & received Plans submitted for Supplemental lease deed Construction Work in Designs
Slide 33: Stronger Returns: RoCE to Expand by 500 bps
STRONGER RETURNS RoCE TO EXPAND BY 500 BPS RETURN ON CAPITAL EMPLOYED(1) 20%+ RoCE EXPANSION DRIVEN BY 15% • Asset management initiatives in existing assets • Increased share from Capital Light Business 5% • High ROCE investments like brownfield expansions • Unlocking non-cash generating assets FY17
Slide 34: Key Enablers
KEY ENABLERS Governance Human Capital One Tata Operational Excellence Paathya Digital 34
Slide 35: Doing Business the Responsible Way
DOING BUSINESS THE RESPONSIBLE WAY Waste H1 FY 24/25 UPDATE 100% elimination of single-use plastic 284 Tons of Plastic Saved through Glass Bottles, Bio-degradable Bathroom Amenities, Paper Straws Waste 100% operating hotels will have an organic waste management system 55 hotels have bottling plants
Slide 36: Elevating Our Vision, Aligned with Our Purpose
ELEVATING OUR VISION, ALIGNED WITH OUR PURPOSE VALUED, RESPONSIBLE ECOSYSTEM MOST ICONIC^& PROFITABLE HOSPITALITY COMPANY^ IN SOUTH ASIA 36
Slide 37: Our Strategy Accelerate 2030
OUR STRATEGY ACCELERATE 2030 MOST VALUED, VISION RESPONSIBLE & PROFITABLE HOSPITALITY ECOSYSTEM 2x+ EXCELLENCE REVENUE GROWTH IN OPERATIONS STRATEGIC INITIATIVES EVOLUTION OF BRANDSCAPE EXPANSION OF PORTFOLIO 700+ HOTEL PORTFOLIO HUMAN CAPITAL CUSTOMER CENTRICITY DIGITAL ENABLERS PAATHYA ONE TATA GO
Slide 38: From Aspiration to Acceleration
FROM ASPIRATION TO ACCELERATION AMBIT TRAVEL ECOSYSTEM CONFERENCE | 12TH DECEMBER 2024 38
Slide 39: Disclaimer
DISCLAIMER This presentation contains selected information about the activities of the Company and the Group as at the date of this presentation. The information in this document have been collected with the purpose to provide interested parties with information about the Group including but not lim
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