Strong Q4 momentum likely to continue for Indian Hotels in FY26

Indian Hotels Company (IHCL) posted strong numbers in the January-March quarter (Q4) of FY25, driven by 14 per cent growth in average room rates (ARRs).

- DEVANGSHU DATTA

The Tata group hotel major reported a consolidated revenue of ₹2,420 crore (up 27 per cent year-on-year or Y-o-Y, and down 4 per cent quarter-on-quarter or Q-o-Q).

Earnings before interest, tax, depreciation and amortisation (Ebitda) stood at ₹860 crore (up 30 per cent Y-o-Y, down 11 per cent Q-o-Q) in Q4FY25.

The quarter saw 13 per cent Y-o-Y like-for-like revenue growth with 16 per cent Y-o-Y revenue per available room (RevPAR) improvement.

Occupancy grew 80 basis points (bps) Y-o-Y to 79.4 per cent while management fees also went up 15 per cent to ₹170 crore in Q4.

The IHCL management said that momentum was good in April 2025, with 17 per cent Y-o-Y revenue growth.

The management's guidance is for double-digit revenue growth in FY26 and beyond.

This would be aided by healthy ARR growth, higher wedding days, growth momentum in new businesses, three new-owned hotels in the first half, and a new TajSATS kitchen at Jewar airport.