Monday, September 16, 2024 Indian Hotels Company Limited ( IHCL ), a subsidiary of the Tata Group, has achieved a significant milestone, becoming the first Indian hospitality company to reach a market capitalization of USD 10 billion. This marks a remarkable journey for the company, which began with a daily tariff of USD 0.07 in 1903 at its inaugural property in Bombay.
The post-COVID travel boom has propelled Indian hospitality companies to new heights, with IHCL leading the way. The company’s success is attributed to its strong brand portfolio, strategic expansion, and the growing demand for domestic travel in India. Puneet Chhatwal, MD & CEO of IHCL, expressed his pride in reaching this milestone while emphasizing the immense potential of the Indian tourism sector.
He highlighted the government’s focus on infrastructure development, particularly in transportation, as a key driver for India’s emergence as a global tourism destination. Chhatwal also predicted significant growth in the meetings, incentives, conferences, and exhibitions (MICE) segment and continued expansion of domestic tourism. IHCL’s portfolio currently includes 340 hotels, operating under four brands: Taj, SeleQtions, Vivanta, and Gateway.
The company has been actively expanding its presence across India and globally, with 112 hotels under development in 130 locations across 13 countries. While IHCL has taken the lead, other Indian hospitality companies are also making strides. Oberoi Hotels, the second most valuable hospitality company in India, has a market cap of approximately USD 2.
9 billion. ITC Hotels, although not yet listed separately, is poised to become a significant player in the hospitality sector. The boom in the Indian hospitality industry is primarily driven by domestic travel, as international inbound tourism has yet to fully recover to pre-COVID levels.
Indian airlines, operating close to capacity due to grounded aircraft and financial challenges, are struggling to meet the growing demand for air travel. However, with the gradual return of grounded aircraft and the expansion of airline capacity, the industry is expected to catch up with the unprecedented growth in demand. IHCL’s achievement marks a significant milestone for the Indian hospitality sector, demonstrating its potential to contribute to the country’s economic growth and create jobs.
As the industry continues to evolve and expand, it is poised to play a vital role in India’s tourism landscape..
