Indian Hotels Co Ltd

- Puneet Chhatwal mentioned a CAPEX of about Rs. 600 crore for the current/forthcoming periods, funded through internal cash flows without taking on any debt. - The company is investing in specific properties (e.g., two hotels in Ekta Nagar) but plans to possibly do sale and leaseback transactions to adjust CAPEX in the future. - There is no indication of immediate new fundraising through debt or equity; current growth is supported by healthy cash flows. - The strong balance sheet with gross cash reserves over Rs.1800 crores supports ROCE accretive opportunities without needing additional external funding. - Future debt or equity fundraising has not been explicitly mentioned or indicated in the transcript provided.

- Current year CAPEX spent: Rs. 470 crores - CAPEX guidance for the remainder of the current year and next year: Approximately Rs. 600 crores - Planned investments include building two hotels in Ekta Nagar: Vivanta and Ginger near the Statue of Unity - Strategy involves sale and leaseback for some assets, not planning to own properties perpetually especially in non-metro markets - CAPEX aligned with internal cash flows, no additional debt planned currently - Renovation investments in existing hotels to enhance premiumization and asset management initiatives, e.g., Taj Mahal Hotel Delhi renovation - Targeted CAPEX range for next year: Rs. 750 to 800 crores inclusive of renovations and greenfield projects - Strategic focus on asset-light growth with 76% portfolio asset-light; operating leases for Ginger brand to support expansion - Plans to invest in new brands, expanded footprint in Tier-2 and Tier-3 cities, and new tourism infrastructure aligned with government support

Future growth expectations for The Indian Hotels Company Limited (IHCL) in sales/revenue/volumes are as follows: - **Double-digit revenue growth** expected in the next financial year driven by portfolio expansion, new brands and businesses, and effective asset management. - **Portfolio growth:** 85 hotels in the pipeline with 28 hotels signed and 16 opened year-to-date; capability to open 2+ hotels monthly over the next 3-4 years. - **New brands and businesses** to grow at ~30% year-on-year, with Ginger brand revenue expected to surpass Rs. 600 crore next year. - **Taj SATS** projected to cross Rs. 1,000 crore revenue next year. - **RevPAR growth** expected to remain strong supported by favorable demand-supply dynamics and occupancy levels. - Supply constraints and infrastructure growth (new airports, aircraft orders) to propel travel demand. - Leveraging tourism initiatives and government support to sustain occupancy and rate growth. - Expansion into Tier 2 and Tier 3 cities with new full-service brands targeting average rates near Rs. 8,000–9,000.

- IHCL expects continued double-digit revenue growth driven by portfolio expansion, new brands, and effective asset management. - New businesses (Ginger, Qmin, Amã, Taj SATS) are growing rapidly at ~30% YoY, with Ginger targeting Rs. 600 crore revenue next year and Taj SATS over Rs. 1000 crore. - Core business RevPAR growth is expected to remain strong, supported by favorable demand-supply dynamics, occupancy growth, and rate improvements. - EBITDA margins show expansion (e.g., 45.4% standalone in Q3), with operating leverage anticipated to improve further due to cost optimizations and efficient asset management. - No additional debt is planned as internal cash flows support CAPEX (~Rs. 600 crore next year), with potential asset-light strategies like sale-leaseback for capital recycling. - PAT growth of 18% YoY in Q3 and strong cash flows underpin robust EPS growth expectations going forward.

- The Indian Hotels Company Limited currently has a pipeline of 85 hotels signed for development. - So far in the year, 28 hotels have been signed, and 16 have been opened. - The company is opening approximately two hotels per month, with plans to continue this pace. - They anticipate ongoing organic growth from these openings plus potential inorganic growth and new signings. - Projects such as the Vivanta and Ginger hotels near the Statue of Unity (Ekta Nagar) are under investment but not yet reflected as exits, indicating additional pending developments. - The focus remains on portfolio growth with a strong emphasis on both new and existing business expansions.