Indian Hotels - Focusing On Management Contracts: Motilal Oswal

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Motilal Oswal Report

The Indian Hotels Company Ltd. hosted its investors meet, where it articulated its strategy to capitalise on business recovery, focus on new brands and businesses, pursue asset light growth, sustain spend optimisation, strengthen the balance sheet, and focus on return on capital employed.

Key highlights from the meet are:

• In FY18, management contract hotels formed 32% of the overall portfolio, which has now increased to 46% (including hotels in the pipeline). The company targets to take it to 50% going forward. About 78% of current pipeline hotels are under management contracts.

• As per ‘Aspiration CY22’ announced in CY18, it looked to sign 15 hotels under management contract annually. However, it added 22/29/17 hotels in FY19/FY20/FY21.

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