Puneet Chhatwal, MD and CEO, IHCL .
| Photo Credit:
BIJOY GHOSH
Indian Hotels Company Limited’s (IHCL) US business has recovered and its two properties are not seeing any softness in demand, managing director & CEO Puneet Chhatwal has said.
IHCL has two luxury hotels in the US – The Pierre in New York and Campton Place in San Francisco. Together these have around 300 rooms and contribute to around 10 per cent of IHCL’s consolidated revenue. Overall its international business which comprises owned and managed hotels in the US, UK, Cape Town, Dubai and Sri Lanka accounts for 20 per cent of the consolidated revenue.
IHCL’s hotel in San Francisco was struggling for several months mirroring the economic challenges in the city. Leisure and business footfalls in the city were down since the pandemic impacting the hospitality sector. Some hotels in San Francisco defaulted on loans while others struggled with strikes. But now there is a rebound.
“San Francisco market has already bottomed out as of last November and is showing an upward trend since January. We are seeing a massive jump in growth of 40-50 per cent,” Chhatwal said.
Our San Francisco hotel is debt free and its capital structure is good, Chhatwal said. He added that the performance of the New York hotel too has improved and it generated a positive Ebitda of two million dollars in FY 2025. “For the first time in the history of Pierre it is Ebitda positive,” Chhatwal added.
Ebitda refers to earning before interest tax depreciation and amortisation.
Tourist arrivals
Overall tourist arrivals in the US including those from India have been slow this year due to trade tensions and visa woes. Chhatwal however said IHCL hotels in the US are not seeing a softness in demand. Also overall it is positive for the international business, he added.
IHCL posted₹522 crore net profit in fourth quarter FY 2025, a growth of 25 per cent over the previous year. Revenue grew 27 per cent as the company benefited from strong domestic demand and faster than anticipated growth in new business ventures such as homestays and food delivery. On a full year basis profit grew by 52 per cent to ₹1908 crore driven by double digit growth in Revenue per available room (RevPAR). The company continues to widen its footprint increasing its operating and pipeline hotels to 380.
Chhatwal also announced ₹1200 crore capex in FY 2025 towards hotel upgrades and expansion. This will be used for brand enhancement and building new markets, Chhatwal said. This includes upgradation of hotel in Kozhikode, construction of new hotel at Mopa airport in Goa and renovations projects among others. IHCL also hopes to start construction of the 330 room Taj Bandstand in Mumbai this year.
Published on May 11, 2025
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