The Indian Hotels Company Limited — Q4 FY25 earnings call

The greenfield opportunities in Tier-2, Tier-3 cities or new markets are quite interesting. For example, we are going to open this year greenfield in Ekta Nagar Vivanta and a Ginger, both together. From our point of view that land came at a very compelling proposition and to build straightforward greenfield assets was at a very reasonable cost. So we expect very quick payback of projects like this, which will definitely not exceed 7 years. If we are lucky, it could be in 4 to 5 years' time.

Clarifies management's specific criteria and rationale for pursuing greenfield projects, emphasizing quick payback and strategic locations, rather than just high rates.

Asked by Karan Khanna

each percentage increase or each room night that we don't have it going through there saves us anything around INR 1,000 to INR 1,500 based on the total mix. But as the growth is coming more in the upscale and mid-scale brands, so you can safely assume around INR 700, INR 800 per booking that is channeled directly through our website.

Quantifies the significant cost savings achieved by increasing direct bookings and outlines the strategy to further boost this channel through new digital initiatives.

Asked by Karan Khanna

it is being planned to take this in our subsidiary company. So not on standalone, but on a consol basis, it will be 100% owned. In terms of approvals, we have made good progress. In the next few weeks, we expect to hear some good news in terms of the CRZ approval, which is the next milestone as far as this asset is concerned. And once that is in place, then it's then awaiting 1 final note on the height... construction can actually start towards the end of the year.

Provides a clear update on the progress of a key balance sheet asset, including ownership structure, regulatory hurdles, and expected construction timeline, confirming self-funding capability.

Asked by Karan Khanna

So overall, we have guided towards INR 1,200 crores plus CAPEX for the year... we would think about 60%, 65% of the CAPEX would get spent on renovations and digital investments, and the rest would really be going towards greenfield assets.

Details the planned capital expenditure for FY26, highlighting the balance between maintaining existing assets through renovations and investing in new growth opportunities via greenfield projects and digital initiatives.

Asked by Binay Singh

The question is at what level, 12%, 14%, 15%, 17%, 19%. As things stand today, year-to-date, which means 4 days of May, and 30 days of April, we are definitely at 17% plus, but that's a very high number. So if it stays like this, we are very happy. But things don't stay like that always, as you know. So anything which is north of 13%, 14% is a very healthy number because of the business on the books.

Addresses concerns about the base effect on April's 17% growth, confirming strong current momentum and setting expectations for healthy double-digit growth in early FY26.

Asked by Binay Singh

What we have done is we committed to Indian Association of Tour operators at their annual business conference last year, and we have put in as Indian hotels, committed INR 25 crores to be spent over 3 years in helping promote India outside. We have done that at the WTM in London, most recently last week at the ATM in Dubai, and in March at the ITB in Berlin by hosting the India Day. We'll keep doing these activities.

Outlines IHCL's proactive measures and financial commitment to promote India internationally, aiming to increase foreign arrivals, particularly business-related travel.

Asked by Binay Singh

basically the new contract we have signed in some of the facilities, the way they are accounting for levy change as per the new contract. Earlier it was not a P&L item. Now the levy flows through the revenue and also through the cost. Essentially, that impacts the margin per se, because firstly, it increases your revenue without changing your EBITDA. Overall, if you look at how we are looking at their numbers, the next year, FY '26, we expect because of this, there could be a 1% impact on the margin, but this will also help in growth in the revenues because this levy now gets added to the revenue itself.

Explains the specific accounting change affecting TajSATS's margins, quantifying the expected ~1% impact for FY26, which is crucial for segment-level profitability analysis.

Asked by Sumant Kumar

See, as India gains in importance as a strong economy, more and more brands and organizations would want to have presence in India and a strong presence. And all companies, as far as I can see, have made big plans. The benefit we have is we embarked on this journey some time ago. And just given our signings of 74 contracts last year has given us a very big boost and an edge. And given that we are today net debt free, having a gross cash of INR 3,000 crores and generating cash as we speak, positions us very well to take advantage of any other inorganic opportunities that might come.

Management acknowledges rising competition but highlights IHCL's strong competitive advantages, including its early mover status, robust pipeline, net debt-free balance sheet, and significant liquidity for potential inorganic growth.

Asked by Achal Kumar