Indian Hotels Co. Ltd. · NSE:INDHOTEL
Indian Hotels — The Indian Hotels Company — Kotak Chasing Growth Conference 2024
49 slides from Indian Hotels's conference presentation, Feb 20, 2024
Slide 1: Exchange filing cover letter: Investor / Analyst Presentation
February 20, 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: 5
Slide 2: Aspiration x Execution = Performance
ASPIRATION X EXECUTION = PERFORMANCE Kotak Chasing Growth 2024
Slide 3: IHCL Case Study
IHCL CASE STUDY 2
Slide 4: India Growth Story: Favourable Macro-Economic Tailwinds
INDIA GROWTH STORY FAVOURABLE MACRO-ECONOMIC TAILWINDS Services Economy Lowest unemployment levels in 6 years Stable Interest Rates, Favorable Demographics Declining Core Inflation Rising Fastest Growing Discretionary Income Major Economy Globally MACRO TAILWINDS Source: S&P Global, FICCI Report, Eq
Slide 5: Hospitality Industry Upcycle to Continue
HOSPITALITY INDUSTRY UPCYCLE TO CONTINUE Hotel Supply to Grow at CAGR of Expected Rooms Demand CAGR of 5-6% 8-10% In the next 5 years In the next 5 years 2,20,000 1,65,000 1,01,000 Demand Growth to BRANDED 39,000 Continue Outpacing SUPPLY (NO. OF ROOMS) Supply Growth FY 2007 FY 2014 FY 2023 FY 2028
Slide 6: Supply Pipeline Primarily in Non-Luxury, Tier 2/3 Markets
SUPPLY PIPELINE PRIMARILY IN NON-LUXURY, TIER 2/3 MARKETS Luxury - Tier 1 Upscale 33% 27% 55,000 55,000 Others Rooms Rooms 67% Tier 2/3 73% Close to 75% of room inventory Supply in top-10 markets to coming up in Tier 2/3 cities be constrained Source: Analyst Research Reports 5
Slide 7: Behavioural Shift: Consumers Splurging on Experiences
BEHAVIOURAL SHIFT CONSUMERS SPLURGING ON EXPERIENCES Source: McKinsey Consumerwise Global Sentiment Data cited from the report titled “The Promise of Travel in the Age of AI” by Skift + McKinsey & Company 6
Slide 8: FTA Recovery in 2024 to Further Drive Demand Growth
FTA RECOVERY IN 2024 TO FURTHER DRIVE DEMAND GROWTH While Outbound Tourists reached 2023 24.6 99% 2019 24.8 of Pre Covid Inbound Tourist to India 2023 8.2 Yet 85% 2019 9.7 of Pre Covid 0 5 10 15 20 25 MILLION Source: Ministry of Tourism : Note: FTA data published till Nov 2023 7
Slide 9: IHCL Well-Placed to Benefit from Industry & Macro Tailwinds
IHCL WELL-PLACED TO BENEFIT FROM INDUSTRY & MACRO TAILWINDS India Growth Story MACRO-ECONOMIC Hospitality Upcycle, Strong Tailwinds HOSPITALITY INDUSTRY Industry leading Brandscape, Portfolio, Pipeline, Profitability 8
Slide 10: 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 9
Slide 11: We Promised Profitability, We Delivered Record Performance
WE PROMISED PROFITABILITY, WE DELIVERED RECORD PERFORMANCE 10
Slide 12: Record Financial Performance Achieving Key Milestones
RECORD FINANCIAL PERFORMANCE ACHIEVING KEY MILESTONES ₹ 11,000 Crore ₹ 1,000 Crore ₹ 1,000 Crore ₹ 75,000 Crore Enterprise Consol. Free Cash Market Revenue PAT Flows Capitalization 1.5X 2.8X 3.5X 4X PRE-COVID LEVEL All figures for FY23, except Market Cap. which is as on 19th Feb. 24 11
Slide 13: 7th Consecutive Quarter of Record Financial Performance
7th CONSECUTIVE QUARTER OF RECORD FINANCIAL PERFORMANCE 2,004 1,744 1,655 1,516 1,481 1,293 1,258 772 655 565 405 459 402 319 +22% +92% +22% +76% +24% +42% +50% +130% +17% +13% +18% +26% +15% +18% Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Consol. Revenue EBITDA Please Note: • % increas
Slide 14: 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 13
Slide 15: We Promised a Re-imagined Brandscape, We Delivered Performance Across Brands
WE PROMISED A RE-IMAGINED BRANDSCAPE, WE DELIVERED PERFORMANCE ACROSS BRANDS 14
Slide 16: We Continued to Invest Strongly in Brand-Building
WE CONTINUED TO INVEST STRONGLY IN BRAND-BUILDING 15
Slide 17: India's Strongest Brand 2020, 2022, 2023
INDIA’S STRONGEST BRAND 2020, 2022, 2023 & INDIA’S 2nd STRONGEST BRAND 2021 16 Source: Brand Finance
Slide 18: World's Strongest Hotel Brand
WORLD’S STRONGEST HOTEL BRAND 2021, 2022 WORLD’S4th4th STRONGEST HOTEL BRAND 2023 2023 17
Slide 19: Rambagh Palace Rated World's #1 Hotel by TripAdvisor
RAMBAGH PALACE RAMBAGH PALACE RATED WORLD’S #1 HOTEL RATED WORLD’S #1 HOTEL BY TRIPADVISOR Source Source : 2023 : 2023 Travellers’ Travellers’ Choice Choice Awards Awards byby TripAdvisor TripAdvisor 18
Slide 20: Focus on F&B: Scaling-Up Brands, Introducing New Concepts
FOCUS ON F&B SCALING-UP BRANDS, INTRODUCING NEW CONCEPTS SCALING-UP EXISTING BRANDS Delhi, Bhopal, Jaipur Delhi, Bhopal, Jaipur, Bangalore Cape Town, Dubai, London, S’Pore Mumbai, Dubai, Kerala, Kolkata INTRODUCING NEW CONCEPTS Mumbai, Goa Goa, Bangalore Goa Mumbai, Delhi, Bangalore 19
Slide 21: Re-imagined Ginger Delivering Results
RE-IMAGINED GINGER DELIVERING RESULTS * Figures for Enterprise Operational Revenues EBITDA 67% of the Portfolio is Hotels now Lean Luxe commanding FY 19-20 50 ₹ 238 Cr ₹ 55 Cr 25%+ Rate Premium 9M 23-24 62 ₹ 336 Cr ₹ 123 Cr NOW IN 34 HOTELS , YTD REVENUE ₹ 37 Cr AND GROWING 20
Slide 22: Ginger Mumbai Airport Now Open
GINGER MUMBAI AIRPORT NOW OPEN POTENTIAL : REVENUE ₹100 Cr, EBITDA MARGIN 50%+ Performance Success Drivers ₹ 7,000 Value ARR Proposition – Lean Luxe 85% Occupancy (YTD) Location PBT Positive from Month 1 Strong F&B: 29% of Room Revenue No Cannibalization Driven by Qmin at the cost of other IHCL hote
Slide 23: Qmin Showcasing Growth Across Formats
QMIN SHOWCASING GROWTH ACROSS FORMATS Asset Light Growth: ₹ 72 Cr GMV Key Imperatives 9M FY 23-24 Business Mix 9MFY24 Qminization of Ginger Strategic Alliances 49% 51% Delivery: Online & Offline Profitable Growth Qmin in Ginger Hotels Delivery, Shops, QSR 22
Slide 24: amã on a Growth Journey
amã ON A GROWTH JOURNEY Poised to Hit 150+ 100+ Portfolio Operational 16 Signings 143 (Q3FY24) 114 80 11 Openings (Q3FY24) 38 20 Mar'20 Mar'21 Mar'22 Mar'23 Dec-23 Operational Pipeline Operational + Pipeline 23
Slide 25: Re-imagined TajSATS Record Performance Continues
RE-IMAGINED TajSATS RECORD PERFORMANCE CONTINUES All figures for Q3 FY24 ₹ 233 Cr ₹ 60 Cr 26% 59% Revenues EBITDA EBITDA Margin Growth of Growth of 5.1 pp Market Share 34% YoY 68% YoY Margin Expansion YTD FY24 Revenue (₹ 650 Crore), EBITDA (₹ 162 Crore) and PAT (₹ 111 Crore) surpassed previous Full
Slide 26: 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 9M Growth YoY 9M Growth YoY 34 % 17 % 25
Slide 27: 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, OWN BUNGALOWS QMIN GMV LIKELY INR 125 Cr + COUNT TO CROSS 15 26
Slide 28: We Promised Growth, We Delivered Unprecedented Expansion
WE PROMISED GROWTH, WE DELIVERED UNPRECEDENTED EXPANSION 27
Slide 29: Portfolio Growth Achieved 300+ Hotels Milestone
PORTFOLIO GROWTH ACHIEVED 300+ HOTELS MILESTONE 107 304 94 216 + 88 Operational Pipeline 89 14 28
Slide 30: Focus on Global Prominence, Domestic Dominance
FOCUS ON GLOBAL PROMINENCE, DOMESTIC DOMINANCE 200 HOTELS OPERATIONAL IN INDIA 2 1 1 1 Chitwan Kathmandu Paro Phobjika 2 Indian Sub-continent London 1 Industry-leading expansion 1 Frankfurt San Francisco 1 Riyadh 1 2 NYC 1 280 Dhaka Makkah 2 3 Colombo 1 Dubai 1 Lusaka 2 Bentota IHCL is now present i
Slide 31: Highest-Ever Openings and Signings in a Year
HIGHEST-EVER OPENINGS AND SIGNINGS IN A YEAR CY 2023 FY24 (YTD) 33 18 33 18 Signings Openings Signings Openings 10 5 On Track for 10 5 6 5 20 Openings 8 5 11 2 10 2 in FY24 6 6 5 6 Excluding Tree of Life portfolio 30
Slide 32: Portfolio Growth Primarily Through Management Contracts
PORTFOLIO GROWTH PRIMARILY THROUGH MANAGEMENT CONTRACTS OPERATIONAL INVENTORY PIPELINE BY CONTRACT TYPE BY CONTRACT TYPE Ginger 78% 24% Others 22% 42% 58% 76% Owned / Leased Mgmt. Contract Owned / Leased Mgmt. Contracts As on 31st December 2023 31
Slide 33: Management Fees Increase Due to Asset Light Growth
MANAGEMENT FEES INCREASE DUE TO ASSET LIGHT GROWTH 2X ( 9M FY24 VS 9M FY20 ) ₹/ Crores 319 276 156 134 Increase in hotels under 119 management to fuel Management 64 Fee Growth High Flow Through FY20 FY23 FY24 Q3 9M Management Contract operational inventory increased 75% in FY24 from FY20 32
Slide 34: What We Expect as We Go Into Next Year (Asset Management)
WHAT WE EXPECT AS WE GO INTO NEXT YEAR (ASSET MANAGEMENT) LAUNCH OF NEW HOTEL BRANDS TO OPEN 2+ HOTELS STRATEGIC CASH RESERVE ACCELERATE GROWTH IN TIER 2 & TIER 3 A MONTH CAPEX AND NEW BUSINESS SUPPORT CITIES 33
Slide 35: We Promised Iconic Hospitality, We Delivered World-Class Customer Centricity
WE PROMISED ICONIC HOSPITALITY, WE DELIVERED WORLD-CLASS CUSTOMER CENTRICITY 34
Slide 36: 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 37: Unparalleled Customer Satisfaction Improving NPS Scores
UNPARALLELED CUSTOMER SATISFACTION IMPROVING NPS SCORES FY 2019/20 67.3 66.0 FY 2022/23 69.4 68.5 FY 2023/24 (YTD) 73.8 72.7 Source: TrustYou 36
Slide 38: Loyalty Re-imagined: Tata Neu
LOYALTY RE-IMAGINED TATA NEU Total loyalty led revenue ₹ 840 Crore + 18% Growth vs. Q3FY23 604 102 54 76 Copper Silver Gold Platinum Loyalty contribution Transactions Total Members to enterprise revenue 24% 5.1 Mn. ~3,50,000 “Loyalty Led Revenues is the revenue generated by Loyalty customers through
Slide 39: Enabled by Focus on Culture & ESG
ENABLED BY FOCUS ON CULTURE & ESG 38
Slide 40: Living the IHCL Values
LIVING THE IHCL VALUES TATA VALUES VALUES Excellence Trust Awareness Joy Integrity Unity Pioneering Responsibility 39
Slide 41: Culture of Camaraderie: Celebrating Spirit of Tajness
CULTURE OF CAMARADERIE CELEBRATING SPIRIT OF TAJNESS OBJECTIVES KEY ELEMENTS OF THE DAY Looking back at our journey since Leaders Speak March 24, 2020 Memorial Service Resilience, Responsiveness and Resurgence Special Meals Engaging Activities A day of gratitude 40
Slide 42: Culture of Responsible Business
CULTURE OF RESPONSIBLE BUSINESS PRESERVE PROMOTE Heritage & Brand Environmental Stewardship PROGRESS PROMISE Sustainable Growth Social Responsibility PA R T N E R PRUDENT Transformation Corporate Governance 41
Slide 43: 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 44: PAATHYA Milestones Achieved
PAATHYA MILESTONES ACHIEVED Waste PROGRESS UPDATE 100% elimination of single-use plastic 315 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 45: In Summary We Will Continue to Focus On
IN SUMMARY WE WILL CONTINUE TO FOCUS ON : Strong Balance sheet and Sustained Portfolio Free Cash Flow Growth Enhanced Profitability Asset Management through focus on productivity Enabled by doing Business responsible way PAATHYA 44
Slide 46: Well Poised to Achieve the Ahvaan 2025 Targets
WELL POISED TO ACHIEVE THE AHVAAN 2025 TARGETS Ahvaan Achieved Target Till Date ICONIC AND PROFITABLE HOSPITALITY COMPANY Margin 33% 32.7%* RE-ENGINEER MARGINS RE-IMAGINE RE-STRUCTURE BRANDSCAPE PORTFOLIO Net Debt Zero Net Cash ₹ 1548 Crs On Track CULTURE ONE TATA EXCELLENCE ORGANIZATION DIGITAL PAA
Slide 47: We Promise, and We Will Deliver
WE PROMISE, AND WE WILL DELIVER 46
Slide 48: Aspiration x Execution = Performance
ASPIRATION X EXECUTION = PERFORMANCE Kotak Chasing Growth 2024
Slide 49: 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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