• Revenue guidance: IHCL raised its FY27 revenue growth guidance to 15% to 17% from 12% to 14%, citing a strong first half and events including conventions, the BRICS summit and other major gatherings, alongside improved infrastructure.
• Growth pipeline: Like-for-like growth is around 12% on a RevPAR basis, with total revenue growth around 13, 14; asset management and non-like-for-like growth are expected to add 3 to 4 percentage points to the top line. IHCL has almost 300 hotels in pipeline, expects to open 30 in the second half, and plans 50 to 60 openings per year for the next 3 to 4 years.
• Margins and costs: Consolidated Q2 margin was 28.4%, up 50 basis points, while standalone margins were almost 39%, up 400 basis points versus Q2 of last year. Management said higher license fees reflect revenue growth and that it is focused on improving staff productivity alongside salary increases.
• Portfolio targets: IHCL expects to hit 700 hotels this year and said it would provide updated portfolio guidance in 3 weeks; it is targeting 20% ROCE, versus 17% currently, and expects to get very close to its goals within the next 3 to 4 quarters. Its portfolio is 94% capital-light, including 81% management contracts, 13% operating leases and 6% owned.
• Demand and pricing: West Asia travel disruption affected routes through Dubai, Abu Dhabi and Doha, as well as Taj Sats and Dubai hotel fee income; management expects the impact to ease when travel recovers. First-half occupancy was north of 80%, demand is outpacing supply, and constrained supply in key markets supports pricing power.