Indian Hotels Plans ₹6,000 Crore Expansion, Targets Boutique Hotel Acquisition by FY30

Indian Hotels Company Limited (IHCL), India’s top hospitality company, will invest around ₹6,000 crore (about $1 billion) over the next 5 years to grow its hotel portfolio. The goal is to reach 700 hotels and 70,000 rooms by the financial year 2030.

Chairman Shares Expansion Strategy

At IHCL’s 124th annual general meeting, Chairman N Chandrasekaran explained the plan to spend about ₹1,200 crore each year on expansion. From the current 350 hotels (including 232 already operating), IHCL wants to more than double its total count and boost room capacity from over 42,500 to 70,000.

Looking to Acquire Boutique Chains

IHCL is exploring the possibility of buying a boutique hotel chain to accelerate growth. Chandrasekaran mentioned that a chain like Tree of Life Resorts & Hotels fits this strategy well. The company had already formed an alliance with Tree of Life in 2024, which owns 16 unique properties in scenic hill locations such as Dharamshala, Manali, Kumaon, and Mussoorie.

Mix of Owned and Managed Hotels

To achieve such large-scale expansion, IHCL plans to shift more toward management contracts rather than owning all properties outright. Chandrasekaran noted that 7–8 years ago, only 5% of hotels were under management contracts. Going forward, the plan is to move to a model where eventually only about 35–40% of properties are owned and the rest are managed on behalf of other owners.

Rival Competition Heats Up

IHCL’s aggressive plans come as competitors like Marriott are also expanding rapidly. Marriott is targeting 270 hotels and 50,000 rooms by FY30 in India, which will make the country its third-largest market after the US and China.

Iconic Mumbai Project Underway

Among the new developments is a luxury hotel in Mumbai next to the Taj Land’s End, where IHCL is investing ₹2,500 crore. This 250-room hotel will be fully owned by IHCL. Chandrasekaran said that while the company wants to create landmark properties itself when possible, it will prefer management contracts for other expansions.

About Indian Hotels Company Limited

The Indian Hotels Company Limited is a hospitality company from India that operates a wide range of properties, including hotels, resorts, jungle safaris, palaces, and spas. It also provides in-flight catering services.

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IHCL Share Price Movement

Indian Hotels Company share price was ₹740.75 as of July 8, 2025, 9:55 AM IST, up ₹3.60 or 0.49% for the day. The stock opened at ₹737.90, touched a high of ₹743.85 and a low of ₹737.90. It has a market capitalisation of ₹1.05 lakh crore, a P/E ratio of 55.28, and a dividend yield of 0.30%. Over the past year, the share has traded between a 52-week low of ₹571.05 and a high of ₹894.90. The quarterly dividend amount is ₹0.56 per share.

Conclusion

Indian Hotels is gearing up for a major transformation in the next 5 years. With a mix of acquisitions, strategic alliances, and a balanced ownership model, the company aims to cement its leadership in India’s fast-growing hospitality market.

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