Indian Hotels Co. Ltd. · NSE:INDHOTEL
Indian Hotels — The Indian Hotels Company — Investor Day (November 2024)
62 slides from Indian Hotels's investor day presentation, Nov 19, 2024
Slide 1: From Aspiration to Acceleration
FROM ASPIRATION TO ACCELERATION CAPITAL MARKET DAY, 19th NOVEMBER 2024 1
Slide 2: A Promise is a Promise
A Promise is a Promise - Ratan N. Tata 2
Slide 3: We Promised, We Delivered, We Transformed
WE PROMISED WE DELIVERED WE TRANSFORMED 3
Slide 4: 4
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Slide 5: IHCL's Story of Transformation 2017-2024
IHCL’s STORY OF TRANSFORMATION 2017-2024 P&L BALANCE SHEET BRANDSCAPE GROWTH MARKET CAP. Rev. ₹ 4,000 Cr Net Debt # Portfolio 155 ₹ 13,000 Cr Where We Were EBITDA 16% ₹ 3,000+ Cr # Operational 142 ₹ 13,000 Cr #Shareholders 1.4L in 2017 ROCE 5% # Pipeline 13 PAT (₹ 63 Cr) Instl. Holding 40% Where We
Slide 6: 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 7: What If? to What Next?
WE STARTED THIS JOURNEY BY ASKING OURSELVES “WHAT IF?” TIME HAS COME TO ASK OURSELVES “WHAT NEXT?” 7
Slide 8: What Next? Why? Where? How?
WHAT NEXT? WHY? WHERE? HOW? What Why Where How What Next? Why We Exist: Where To Play: How to Win: Bright Future Ahead Defining our Brand & Unveiling the for industry, IHCL Purpose & Growth Execution Strategy Well Positioned Vision Strategy and Goals for 2030 8
Slide 9: What Next? Why? Where? How?
WHAT NEXT? WHY? WHERE? HOW? What Why Where How What Next? Why We Exist: Where To Play: How to Win: Bright Future Ahead Defining our Brand & Unveiling the for industry, IHCL Purpose & Growth Execution Strategy Well Positioned Vision Strategy and Goals for 2030 9
Slide 10: The Future is Bright: Long-Term Structural Tailwinds
THE FUTURE IS BRIGHT LONG-TERM STRUCTURAL TAILWINDS 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. Income (‘24->’30) Future CAGR from 10.9 Mn
Slide 11: Hospitality Emerging Trends
HOSPITALITY EMERGING TRENDS SEEK NEW New Heritage Culinary Digital EXPERIENCES Destinations Tourism Tourism Nomads CELEBRATE LIFE Destination Leisure and Adventure Company & MOMENTS Weddings Sports Travel off-sites ASPIRATIONAL BUILD RELATIONSHIP Business MICE / Family Get- Private Stays / + Travel
Slide 12: IHCL Today: Industry Leader in India
IHCL TODAY INDUSTRY LEADER IN INDIA 121 100 350 Hotels 50 38 19 22 42,500+ Keys As on 31st October, 2024, including hotels in pipeline 12
Slide 13: 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 13
Slide 14: What Next? Why? Where? How?
WHAT NEXT? WHY? WHERE? HOW? What Why Where How What Next? Why We Exist: Where To Play: How to Win: Bright Future Ahead Defining our Brand & Unveiling the for industry, IHCL Purpose & Growth Execution Strategy Well Positioned Vision Strategy and Goals for 2030 14
Slide 15: The Why: Defining Our Purpose
THE WHY DEFINING OUR PURPOSE PIONEERING RESPONSIBLE CHANGE: • Custodians of Indian Hospitality • Pioneering with Responsibility CREATING VALUE: • Sustained Value Creation Pioneering Responsible Change, • Focus on All Stakeholders Creating Value & Shaping the Future SHAPING THE FUTURE: • Setting Glob
Slide 16: 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 16
Slide 17: What Next? Why? Where? How?
WHAT NEXT? WHY? WHERE? HOW? What Why Where How What Next? Why We Exist: Where To Play: How to Win: Bright Future Ahead Defining our Brand & Unveiling the for industry, IHCL Purpose & Growth Execution Strategy Well Positioned Vision Strategy and Goals for 2030 17
Slide 18: IHCL Brandscape: Hotels & Homestays
IHCL BRANDSCAPE HOTELS & HOMESTAYS Platform / Collections Luxury Boutique Leisure Upscale – Full Service BY SEGMENTS BY THEMES Upscale – Lifestyle Wildlife / Adventure Midscale Homestays 18
Slide 19: 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 20: 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 21: What Next? Why? Where? How?
WHAT NEXT? WHY? WHERE? HOW? What Why Where How What Next? Why We Exist: Where To Play: How to Win: Bright Future Ahead Defining our Brand & Unveiling the for industry, IHCL Purpose & Growth Execution Strategy Well Positioned Vision Strategy and Goals for 2030 21
Slide 22: How to Win? Strategy
HOW TO WIN? STRATEGY Expansion Evolution Excellence of Portfolio of Brandscape in Operations 22
Slide 23: Expansion of Portfolio
EXPANSION OF PORTFOLIO Leadership Presence in Key Efficient Accretive in the Indian International Capital Strategic Subcontinent Markets Deployment Acquisitions 23
Slide 24: 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 25: Evolution of Brandscape
EVOLUTION OF BRANDSCAPE Achieve Maintain Launch Build Optimal Premium New Brand Scale Positioning Concepts Equity 25
Slide 26: Transformation of Our Brandscape
TRANSFORMATION OF OUR BRANDSCAPE 50 120 46 100 59 110 2017 2024 26
Slide 27: 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 27
Slide 28: Excellence in Operations
EXCELLENCE IN OPERATIONS Service Brand Asset Margin Excellence Standards Management Expansion 28
Slide 29: Excellence in Operations at the Forefront of Execution
EXCELLENCE IN OPERATIONS AT THE FOREFRONT OF EXECUTION Advanced Profitability Stakeholder Seamless Operational Maximization & Owner Guest Efficiency Management Experience Future Proof Enhanced Safety Leveraging Models & Security Technology 29
Slide 30: Excellence in Food & Beverage
EXCELLENCE IN FOOD & BEVERAGE SCALING UP EXISTING BRANDS KEY INITIATIVES TO DRIVE AND NURTURING NEW CONCEPTS F&B BUSINESS Revenue Management Tools to Increase Footfalls Digitisation - F&B Marketing and Dashboards Expand Beverage Contribution Culinary Chronicles/ Chef and Brand Collaborations Wedding
Slide 31: Excellence in Driving Superior Customer Satisfaction
EXCELLENCE IN DRIVING SUPERIOR CUSTOMER SATISFACTION NPS – IHCL VS INDUSTRY IHCL Peer Avg 70+ 72.9 68.8 64.5 60.3 2022-23 2023-24 Going Forward 31
Slide 32: Key Enablers
KEY ENABLERS Governance Human Capital One Tata Commercial & Customer Paathya Digital 32
Slide 33: Doing Business the Responsible Way - 2030 Goals
DOING BUSINESS THE RESPONSIBLE WAY - 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 Cultu
Slide 34: Unveiling the 2030 Goals
UNVEILING THE 2030 GOALS ° a 9 . 34 TAJ SELEQTIONS GATEWAY VIVANTA GINGER TREEOFLIFE ama min mS IWCL
Slide 35: 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 36: 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 37: Unveiling Our Strategy: Accelerate 2030
UNVEILING 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 O
Slide 38: Financial Implications
FINANCIAL IMPLICATIONS Ankur Dalwani, EVP & CFO 38
Slide 39: 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 40: 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 RevPAR growth, Asset Chambers growth Management
Slide 41: 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 42: 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 43: 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 44: Asset Management & Repositioning of 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 45: Asset Management & Repositioning of Key Assets
1 ASSET MANAGEMENT & REPOSITIONING OF OUR KEY ASSETS PROTECTING AND POLISHING OUR CROWN JEWELS ST. JAMES COURT & TAJ 51 BG SUITES AND TAJ CAPE TOWN RESIDENCES, LONDON (Consolidated in 2020) ₹ Cr ₹ Cr Turnover 495 66 82 350 CAGR 9% Turnover CAGR 6% FY20 EBITDA FY24 FY20 EBITDA FY24 CAGR 12% CAGR 42%
Slide 46: New Business: Qmin, Lean Luxe Ginger
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 47: Ginger Mumbai Airport: A Successful Expansion Story
2 GINGER MUMBAI AIRPORT A SUCCESSFUL EXPANSION STORY YTD Oct Performance (7 Months) Potential to No. of Keys : 371 achieve revenue Start of operations : Nov 2023 Occupancy ARR Revenue EBITDA ₹ 100 CR 87% ~₹ 6,000 ₹ 52 Cr Margin 55% 47
Slide 48: Rapidly Scaling Up New Concepts
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 49: 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 13,000 expected to cross NET UNIT 7,436 GROWTH ₹ 1,000 Cr MANAGED HOTEL ROOMS FY17
Slide 50: 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 50
Slide 51: The Chambers – Taj Mahal, New Delhi
THE 51 CHAMBERS – TAJ MAHAL, NEW DELHI
Slide 52: The Chambers – Taj West End
THE 52 CHAMBERS – TAJ WEST END
Slide 53: The Chambers – Taj Mahal Palace, Mumbai – Renovating
THE 53 CHAMBERS – TAJ MAHAL PALACE, MUMBAI – RENOVATING
Slide 54: Taj SATS 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 55: 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) 55
Slide 56: 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 57: 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 58: 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 59: 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 60: Unveiling Our Strategy: Accelerate 2030
UNVEILING 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 O
Slide 61: 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
Slide 62: From Aspiration to Acceleration
FROM ASPIRATION TO ACCELERATION CAPITAL MARKET DAY, 19th NOVEMBER 2024 62
The Indian Hotels Company — Investor Day (November 2024) on 6ix