The future checked into Indian Hotel Company Limited (IHCL) when Puneet Chhatwal took over the reins as its Managing Director and Chief Executive Officer in 2017.
The firm had then posted a cumulative loss of Rs 1,740 crore but in one year, Chhatwal led it to the black, reporting a profit of Rs 101 crore for the financial year 2017-18. The tale, however, did not end there.
IHCL bettered its performance in the next financial year by making a profit of Rs 285 crore, followed by Rs 354 crore in 2019-20. And then came COVID-19.
The pandemic slowed down IHCL but the firm bounced back as the tourism sector became active again after COVID-19. It made a profit of Rs 1,003 crore in the financial year 2022-23.
Under Chhatwal's leadership, IHCL introduced new brands such as 'SeleQtions' and re-introduced 'Vivanta' and 'Ginger.' These were besides its flagship brand 'Taj'.
Chhatwal is steering the firm with the slogan, 'Ahvaan 2025', a route map for profitable growth.
Ahvaan has four major targets: 1. To build a portfolio of 300 hotels by 2025-26; get properties with 50 percent ownership or lease them or with lesser capital (managed hotels); achieve 33 per cent EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation); and clock zero debt.
IHCL has achieved the last three targets.
Puneet Chhatwal speaks of the firm's future plans:
How did you achieve all these?
We started our journey in December 2017. Our target was Aspiration 2022. We continued our growth for six consecutive years. We changed our slogan to 'Reset' during COVID. It aimed at how to function during the crisis. We achieved the target of 33 percent EBITDA. The company board's support too helped our progress.
IHCL has 64 percent of owned/leased properties. Will it continue?
The leased properties such as Taj Mahal Palace, Taj Lands End, Lake Palace in Udaipur, and The Pierre in New York are all achievements. Having prominent properties and managing them profitably both are equally important. We are planning several projects in Lakshadweep, and the northeastern states.
Even while retaining Taj as the flagship brand, you are adding other portfolios like SeleQtions, Vivanta, Ginger, etc., at different levels?
We introduced a new brand architecture, and the re-introduction of Vivanta and Ginger was part of it. We also rolled out amã Stays & Trails and Qmin. TajSATS, too, was relaunched. We studied what was not working in a brand and fixed it. It worked.
Which are the major hotels you are planning for the next financial year?
We will open at least 20 hotels, including Taj, at Godrej's The Trees in Mumbai's Vikhroli. We will launch Ginger in Santacruz and Kochi. A Vivanta is being planned at Arunachal Pradesh's Tawang bordering China. We are also planning a Taal Kutir in Kolkata and a second project at Tirupati. We are also considering expanding our footprints to those state capitals where we are not present.
You have successfully implemented the business tourism model that includes meetings, conferences and exhibitions in Rajasthan and Goa. Do you plan to expand it?
Kerala is a major destination. Taj Malabar will be completely renovated within a year. The 100th Taj Hotel will be opened near the Cochin International Airport.
What is the status of business travels?
It has returned to India. However, it needs to improve globally.
Besides Taj, IHCL has Ginger, too, at Mumbai's Santacruz airport. It has hotels at the Kempegowda Airport in Bengaluru and at Kochi. What is the significance of hotels in airports?
The brand gets immense visibility in airports. Our target is 360-degree growth.
Have the properties in Maldives and Dubai returned to normal post-COVID?
The hotels in Maldives and Dubai performed well during the COVID-19 days. Goa and Rajasthan are behind them. Uttarakhand, too, is one of our major markets. Sri Lanka is gradually returning. Recently, we announced a Taj and Vivanta in Dhaka.
You planned a project on Kochi's Gundu Island. Besides renovating the Taj, can we expect the Gundu Island project soon?
We are studying the project. We will consider the Gundu Island project after renovating Taj Malabar.
What are the other plans for Kerala?
SeleQtions will open in Munnar by November this year. Besides the existing one at Kalamassery, we will open two Ginger hotels. One is behind Taj Kochi CIAL. The second Ginger is on MG Road. It will open in July. We are opening a SeleQtions at Bekal in Kasaragod.
