IHCL to Expand via Acquisitions, New Destinations

New Delhi, Aug 24 (PTI) The country's biggest hospitality player Indian Hotels Company Limited (IHCL) is looking at forging strategic acquisitions to expand its presence in existing markets and enter select destinations in Europe and Southeast Asia, CEO and MD Puneet Chhatwal said.

In an interview to PTI, he shared that the Tata Group-owned firm will not acquire more physical assets for its marquee brand the Taj and instead, opt for an operating contract arrangement.

Large hospitality firms typically have a mix of owned as well as managed or operated properties in their portfolio. IHCL uses the terminology of asset light and asset heavy, with the latter denoting a physical asset it owns.

As part of its 'Accelerate 2030' strategy unveiled earlier, IHCL has set a target of over 700 hotels in its portfolio by 2030.

Asked if IHCL was looking at expansion in key markets globally and entering new markets via more strategic acquisitions, Chhatwal said, "Absolutely, we would be looking at it because we are a zero-debt company and we still have Rs 3,000 crore cash.

Everyday we are creating more cash and there are other opportunities in terms of asset management where we unlock cash also by getting rid of many non-core assets. So to be in a position where you have no net debt, they put you in a position where you can actually act on or execute these kinds of acquisitions".

He observed that the firm's strategy will always focus on the larger coverage of India and the subcontinent, with selective growth of Taj in key locations across the world.

"But we will not acquire assets for Taj, rather use it more like an operating contract model. If then we have to put in some little amount of money for renovations or for our branding or money to enter a market, we will do that in select destinations in Europe and Southeast Asia," the IHCL MD and CEO told PTI.

Earlier this month, IHCL said its hotel portfolio is set to cross 550 properties with 55,000 rooms after the firm signed definitive agreements to acquire a controlling stake in ANK Hotels and Pride Hospitality.

IHCL also inked a distribution agreement with Brij Hospitality Pvt Ltd.