Indian Hotels Company Limited (IHCL) will invest between ₹6,000 crore and ₹7,500 crore in capital expenditure over the next five years, according to Tata Group Chairman and Non-Executive Director N Chandrasekaran, who shared the update at the company’s annual general meeting.
Responding to shareholder queries, Chandrasekaran said IHCL generates annual free cash flows of around ₹1,200 crore, enabling it to comfortably support yearly capital expenditure in the range of ₹1,000 crore to ₹2,000 crore.
He also highlighted the company’s upcoming luxury project, Taj Bandstand in Mumbai. Built on a two-acre site near Bandra Fort, the property will feature 50 floors and around 500 rooms, with an estimated investment of ₹2,000 crore.
Chandrasekaran confirmed that the company’s total capex commitment over the next five years will remain within the ₹6,000–7,500 crore range, aligned with its long-term expansion strategy.
Strong Growth and Expansion Targets
IHCL, India’s largest hotel chain, reported operating revenue of ₹9,689 crore, with 69% coming from its flagship Taj brand, which operates in the luxury segment.
Under its “Accelerate 2030” strategy, the company aims to scale its consolidated revenue to ₹15,000 crore and expand its portfolio to over 700 hotels, up from 630 currently. Of these, around 375 properties are already operational.
Over the past year, IHCL has also expanded through acquisitions, including ANK Hotels, Pride Hospitality, and Brij Hotels, strengthening its presence across segments.
Balanced Domestic and International Strategy
Chandrasekaran said the company is pursuing a cautious approach to international expansion. He noted that the Taj property in Frankfurt is set to open this year, marking part of its global growth plans.
He also said IHCL will maintain a balance between owned properties and management contracts, noting that while management contracts enable faster expansion, they require strong focus on maintaining brand standards and service quality.
Domestic Tourism Driving Growth
The Tata Group Chairman highlighted that while foreign tourist arrivals have softened due to global uncertainties, domestic tourism in India continues to grow strongly, supported by economic resilience.
He said the global environment remains uncertain due to geopolitical tensions, shifting trade dynamics, and technological disruptions, but economic activity has remained broadly stable, citing IMF projections of 3.1% global growth in 2026 and 3.2% in 2027.
India, he noted, remains one of the fastest-growing markets for the hospitality sector, driven by rising incomes, improved connectivity, infrastructure investment, and growing consumer aspirations.
Chandrasekaran added that domestic tourism has continued its strong momentum, even as international arrivals remain under pressure, reinforcing India’s position as a key growth market for the hospitality industry.
