It seems The Indian Hotels Company Limited (IHCL), South Asia’s largest hospitality company is truly committed to its goals. Back in June,2020 we have seen IHCL to loose 46cr of Net profit in comparison with the 3rd quarter of fiscal year 2019-2020. That was the beginning of worldwide pandemic hitting the Hospitality and Tourism Industry.
While fighting with the challenges by the COVID19, as there was a countrywide lockdown imposed, we have seen them support distressed people and open their hotels for the health workers. They have already maintained their growth even when the regular business is down to zero. This is visible in their Q4 Financial Report.
“IHCL has taken several measures to mitigate the financial impact on both profits and cash flow in recent months. With the ease of lockdown restrictions, we are seeing gradual signs of improvement in the second quarter; however full recovery will take some time.”
Mr. Giridhar Sanjeevi, Executive Vice President and Chief Financial Officer, IHCL
A few key Highlights of IHCL 2019-2020 Q4 Financial report
- IHCL signed 29 hotels in the current financial year, adding over 3,700 rooms to its portfolio.
- The Company opened twelve hotels, one hotel a month, for FY 2019-20 and added over 1,500 rooms to its operational inventory.
- IHCL harnessed its diverse brandscape to drive asset light growth through management contracts. 42% of our portfolio is now management contracts. This was 32% two years ago.
- IHCL started the New Year with an addition to its magnificent collection of authentic palaces – Taj Fateh Prakash Palace, Udaipur, located within the historic City Palace on the shores of Lake Pichola in Udaipur; offering panoramic views of the lake while being surrounded by the Aravalli Hills, Jagmandir Island and the legendary Taj Lake Palace.
- The company added Taj Tirupati, further strengthening the group’s spiritual tourism portfolio.
- It expanded its strong presence in Goa with the opening of Cidade de Goa and Taj Hotel & Convention Centre, Goa, having over 500 rooms and 60,000 sq. ft. of conference space – the largest convention venue in Goa.
- The Company reached a milestone with the opening of the 50th Ginger in Surat, taking the total operational inventory of Ginger hotels to over 4,400 rooms across 35 locations.
R.E.S.E.T 2020 by IHCL
IHCL has defined a five-point agenda named ‘R.E.S.E.T 2020’ to address the challenges posed by the unprecedented global crisis and help the company navigate through these difficult times. The implementation of R.E.S.E.T 2020, has provided a transformative framework to help the Company overcome COVID-19 related challenges, and has yielded positive results in the first half of FY 2020-21.
- Revenue Growth:- Implemented a host of new revenue generation initiatives such as Hospitality@Home, Qmin and rolled out various campaign offers like 4D – Dream, Drive, Discover and Delight, Urban Getaways and Bizcation to stimulate and capture domestic demand
- Excellence:- Enhanced SOP’s under Tajness – A Commitment Restrengthened and I-ZEST: IHCL’s Zero-Touch Service Transformation, which ensures heightened safety for guests and employees through a host of digital and service interventions
- Spend Optimization:- Leveraged opportunities across all cost heads to rationalize resources and optimize expenditure
- Effective Asset Management:- Continuing to undertake renegotiation of contracts and lease rentals, while monetizing assets
- Thrift and Financial Prudence:- Taking necessary steps to ensure adequate cash flows while reducing the corporate overheads of the company
News Source here and here.
