Indian Hotels Company Limited (IHCL) will invest ₹3,500 crore over the next five years towards key assets upgradation, building digital capabilities and select new projects, the company announced on Wednesday after declaring its fourth quarter result.

IHCL will also launch upscale hotels under the re-imagined Gateway brand and deliver double-digit revenue growth in FY 2025, it said.

Consolidated net profit for the Q4 FY24 grew 27 per cent on a y-o-y basis to ₹418 crore. The profit was led by 18 per cent growth in revenue which stood at ₹1,951 crore. The company generated an earning before interest tax depreciation and amortisation of ₹706 crore and reported a margin of 36.2 per cent.

Double-digit revenue

“IHCL will continue to deliver double-digit revenue growth with new businesses at 30 per cent and opening of 25 hotels. IHCL will also introduce the re-imagined Gateway, a full-service hotel offering in the upscale segment, an ideal fit to capture growth opportunities in emerging micro markets in metros and Tier-II and Tier-III cities,” said IHCL managing director and CEO Puneet Chhatwal.

The brand roll-out starting with 15 hotels will commence with launches in Bekal and Nashik this quarter followed by destinations like Bengaluru, Thane and Jaipur. The brand will scale to a 100 hotels portfolio by 2030.

Chhatwal said the company has also achieved the targets under its Ahvaan 2025 plan well ahead of time with a full year consolidated EBITDA margin of 33.7 per cent, a portfolio of 300-plus hotels and a cash position of ₹2,206 crore.