loader2
Login Open ICICI 3-in-1 Account
  • Text Size
  • Text to Speech
  • Color Contrast
  • Pause Animations

Open ICICI
3-in-1 Account

Manage your Savings, Demat and Trading Account conveniently at one place

+91

BLOG

Indian Hotels Company (IHCL) plans to invest Rs. 6000-7500 cr in capex over the next five years

ICICIdirect Research 01 Jul 2026 DISCLAIMER

News: Indian Hotels Company (IHCL) plans to invest Rs. 6000-7500 cr in capex over the next five years, funded through annual free cash flows of around Rs.1200 cr. A key project includes the redevelopment of the Taj Bandstand property in Mumbai with a 500-room luxury hotel, involving an investment of Rs. 2000 cr. Under its Accelerate 2030 strategy, IHCL targets consolidated revenue of Rs. 15000cr while expanding its portfolio to 700+ hotels from the current 630, with 375 already operational. Management reiterated its focus on maintaining a balanced mix of owned assets and management contracts while pursuing selective international expansion. It also highlighted resilient domestic tourism demand despite moderation in foreign tourist arrivals amid global uncertainties.

View: IHCL has retained its FY30 revenue target of Rs. 15000cr, supported by steady hotel additions, domestic market leadership, new business concepts, and selective international expansion. The company plans FY27 capex of Rs. 1000–1200cr for renovations and new hotels, while its strong cash balance of Rs. 4300cr provides flexibility for both organic and inorganic growth. Management has guided for 12–14% revenue growth in FY27, driven by 7–9% same-store RevPAR growth and additional contribution from new room additions, renovated properties, and recent acquisitions. With global uncertainties expected to stabilize, revenue growth could exceed 15% in H2FY27, while long-term growth drivers remain firmly in place.

Impact: Neutral

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere