Indian Hotels Signs Operating Lease, Opens Taj Hotel in Germany

On September 15, the shares of Indian Hotel Company Limited (IHCL) rose by over 1% to reach ₹429 early in the trading day. This surge followed IHCL's recent announcement of signing an operating lease agreement for the Taj Hotel Hessischer Hof in Frankfurt, Germany.

Historic Hotel Getting a Makeover

The Taj Hotel Hessischer Hof, a historic hotel in Frankfurt, will be undergoing a significant renovation and is scheduled to reopen in 2025. This renovation will give the hotel a modern update while preserving its historic charm. This move marks IHCL's entry into Frankfurt, an important city in Europe.

Luxury in a Central Location

Peakside Capital Advisors AG purchased the Grandhotel Hessischer Hof in 2022, which had around 117 rooms along with an adjacent office building. Before the purchase, this hotel was a fancy 5-star place with 121 rooms and suites. The exact amount paid for the purchase hasn't been shared publicly. The upcoming Taj Hotel Hessischer Hof, after its makeover, will have 134 rooms and is conveniently located near the Frankfurt trade fair grounds, a major spot for meetings and events in Germany.

Puneet Chhatwal, Managing Director and CEO of IHCL expressed excitement about this development, saying, "This is a big step for us as we expand into key international cities. Frankfurt is one of Europe's most exciting destinations, and we're thrilled to have a presence in such an iconic building."

This announcement follows another major launch by IHCL in early September when they introduced WOW Crest, an IHCL SeleQtions hotel located in Indore, Madhya Pradesh. This hotel has 125 rooms and is close to the airport, industrial areas, and landmarks in the city.

Global Presence and Financial Highlights

IHCL operates internationally, with subsidiaries like UOH Inc. owning hotels in the US and St. James Court Hotel Ltd. owning hotels in the UK. In the fiscal year, UOH Inc. reported a turnover of ₹657 crore, while St. James Court Hotel Ltd. reported a turnover of ₹418 crore. IHCL has a presence in Bhutan, Maldives, Nepal, South Africa, Sri Lanka, United Arab Emirates, and Zambia through various ownership structures, including fully owned subsidiaries, joint ventures, and associate companies.

The transformation of the Taj Hotel Hessischer Hof with 134 rooms aims to set new standards for luxury hotels in Frankfurt and marks a historic moment as the first Taj hotel in continental Europe. Boris Schran, Managing Partner at Peakside Capital, highlighted the significance, saying, "Frankfurt is a major international hub where we will establish new luxury standards. This also marks a milestone as the first Taj hotel in continental Europe." Peakside Capital manages assets valued at over EUR 1.4 billion for institutional investors.

IHCL Reports Impressive 30% Jump in Q1 Net Profit

The Indian Hotels Company Ltd (IHCL), renowned for its ownership of Taj Hotels and other businesses like Taj SATS and Ama Stays, announced robust financial results for the April-June quarter, showcasing remarkable growth and profitability.

Consolidated Net Profit Surges by 30%

IHCL revealed a substantial 30% increase in its consolidated net profit, which soared to ₹236 crore during the April-June quarter. This remarkable performance underscores the company's financial strength and strategic acumen.

Strong Revenue Growth

The company's revenue from operations during the same quarter reached ₹1,466.37 crore, marking a substantial 15% surge compared to the corresponding period in the previous fiscal year (FY22). It's worth noting that IHCL incorporates its international hotel portfolio in its consolidated financial filings.