Indian Hotels lifted its FY27 revenue growth forecast to 15%–17% after higher room rates and occupancy drove a 22% rise in quarterly operating revenue, while international hotels and TajSATS faced pressure.
Indian Hotels Company Limited delivered its 18th straight record quarter and lifted its full-year revenue outlook after another strong performance across its core hotel business. In the quarter ended September 30, consolidated operating revenue rose 22% year on year to ₹2,484 crore, while EBITDA increased 24% to ₹706 crore, according to a summary of the company’s earnings call and related market reports. Management now expects consolidated revenue growth of 15% to 17% in FY27, up from an earlier forecast of 12% to 14%, with the hotel division seen expanding 17% to 19% on the back of healthy demand and an enlarged portfolio.
The latest results were driven by broad-based strength in room rates and occupancy, with revenue per available room rising in double digits across brands and occupancy improving from 75% to 82%. That points to a business still benefiting from robust domestic travel and share gains in key markets. The company also highlighted the contribution from asset-management initiatives, including a 132% jump in room revenue at Taj Palace New Delhi, which crossed ₹100 crore in monthly revenue. Multiple reports said Indian Hotels ended the quarter with gross cash of more than ₹4,350 crore, underlining a balance sheet that leaves room for investment, upgrades and expansion.
Not every part of the business moved in the same direction. TajSATS, the group’s air catering arm, faced pressure from geopolitical tension and airline capacity cuts, with EBITDA slipping sequentially and margins under strain. International operations were also mixed: London and the US saw profitability squeezed by higher fuel and power costs, and in London the removal of a property tax waiver added to the drag. Management said renovation work at St James’ Court in London had temporarily weighed on revenue, but the refurbishment is now complete and October trading there is improving.
The outlook remains constructive, even if management is not ignoring near-term risks. During the call, Puneet Chhatwal, Indian Hotels’ managing director and chief executive, said FY28 should be better than FY27, pointing to a pipeline that includes dozens of new hotels and a recovery in international markets if external shocks do not intervene. The company also said the merger with Oriental Hotels is unlikely to close before April 2027, delaying any contribution from that deal. Even so, management argued that the base is getting stronger, wedding and MICE demand should support the second half, and the brand’s international footprint continues to reinforce its positioning at home.
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