Indian Hotels Company Ltd (IHCL) achieved a significant milestone by signing 47 hotels and opening 20 in the first half of FY2027, bringing its total portfolio to 670 hotels. According to reports from CNBC TV18, the company's signings included four Taj hotels, one Brij hotel and one Atmantan property in the luxury segment, while Ginger and Tree of Life accounted for 19 signings in the mid-scale segment. With 280 hotels in its pipeline, IHCL is on track to reach its target of 700 hotels under its Accelerate 2030 strategy ahead of schedule. As per Suma Venkatesh, Executive Vice President - Real Estate & Development at IHCL, the strong momentum positions the company to achieve its Accelerate 2030 guidance of a 700-hotel portfolio ahead of schedule.
IHCL expanded in established markets including Mumbai, Gurugram, Goa and Hyderabad during the first half. The company also entered emerging destinations such as Kandla, Ayodhya, Tadoba, Kota, Bokaro and Jorhat. Internationally, IHCL opened Taj hotels in Frankfurt, Germany, and Kruger, South Africa, taking its number of operating hotels to 390. The company operates 10 hotel brands across different market segments, catering to various hospitality needs. According to CNBC TV18, the growth was distributed across IHCL's diversified brandscape, with the mid-scale segment driving significant volume through 19 signings for Ginger and Tree of Life combined.
India's alternative accommodation market is experiencing explosive growth, with more than 200,000 digitally listed alternative-accommodation units in FY26, up 26% from a year earlier, according to a report jointly published by Booking.com and Videc Consultants. Their combined room capacity is estimated at roughly double India's branded hotel room inventory. The segment is projected to grow to 285,000 units by FY28, with online bookings for homestays, villas and holiday apartments expected to nearly double to ₹18,660 crore by FY29 from ₹9,340 crore in FY26. Including offline bookings, the market is expected to reach ₹41,500 crore by FY29, growing at an annual rate of 21.2%. As per Suman Billa, additional secretary and directorate general of the ministry of tourism, "Demand is expanding rapidly, but supply is not keeping pace. Even if we build all the hotel rooms currently in the pipeline, there will still be a considerable gap to fill."
According to CNBC TV18, Managing Director and Chief Executive Officer Puneet Chhatwal expects revenue growth to surpass earlier guidance as hotel room demand continues to outpace new supply additions. Industry data showed hotel demand grew 8.6% in the first half, compared with a 3.9% increase in supply, helping hotels maintain higher room rates across major markets including Delhi, Mumbai, Goa and Rajasthan. Chhatwal said the company continues to target revenue growth of 12-14%, with growth of more than 15% remaining achievable. The strategy relies on a mix of capital-light and capital-heavy assets to drive sustainable growth through operating leverage and high-margin fee-based businesses.
As reported by CNBC TV18, IHCL shares closed 0.58% lower at ₹711.50 on the NSE on October 12, down ₹4.15. Chhatwal noted that the company's performance has exceeded internal expectations despite the seasonally weaker second quarter. He expects the second half of FY27 to be strong, supported by festivals, weddings, business travel and the company's expansion in India and overseas. October was looking particularly strong, partly because of the timing of Dussehra, Diwali and wedding dates this year.
