Indian Hotels Company Ltd, which owns and operates the hospitality chain under the Taj brand, has unveiled a massive expansion plan under which it aims to invest ₹5,000 crore by 2030.

The hospitality group intends to upgrade its existing portfolio and build properties at strategic locations.

Betting on a tailwind that has been propelling the Indian hospitality sector, the company aims to double the number of hotels that it either owns or runs under a management contract from 350 to 700.

The IHCL management articulated its ambitions as part of the Accelerate 2030 strategy that it announced in Mumbai on Tuesday.

IHCL expects more than 500 hotels to become operational by the end of the decade, up from 232 at present. This is expected to double revenues to ₹30,000 crore.

The growth wave will be triggered largely by newly reimagined brands such Gateway, Ginger, and Tree of Life (in which Calcutta’s Neotia family is a partner), accounting for 275 operational properties by 2030 compared with 95 now.

In contrast, the upscale brands such as Taj, SeleQtions and Vivanta will see 225 operational properties by the end of the decade compared with 137 in 2024.

IHCL, which is sitting on net cash reserves of ₹2,000 crore, would still like to maintain its capital structure.vPuneet Chhatwal, managing director and chief executive officer of the company, said the Covid experience had taught everyone the virtue of not taking on a large debt.

“IHCL has surpassed its guidance by achieving a portfolio of 350 hotels, with over 200 hotels in operation and delivered ten consecutive quarters of record financial performance. This strong performance, coupled with a robust balance sheet, positions us well to accelerate our growth momentum,” Chhatwal said.

While selective investments will be made, the expansion in hotels and room inventories will largely be driven by management contracts. Managed inventory will account for 57 per cent of the total compared with 43 per cent at present. IHCL’s management fees are expected to cross ₹1,000 crore.

Chhatwal explained that given a projected GDP growth of 6.5 per cent and the government’s focus on infrastructure spending, demand for hotel rooms would outstrip supply and rising affluence of the consumer base would spur growth.

IHCL will stay focused on the domestic market even though it will not pass up the opportunity to snap up a good hotel deal overseas. Chhatwal said Taj would be the only brand that IHCL would take abroad, unless the properties are in the subcontinent or within a flight distance of 2 to 3 hours.

While zooming in on new overseas opportunities, the company will look at major ‘lodging destinations’ such as London where Indians travel frequently or places that have a large Indian diaspora, such as UAE, Saudi Arabia, Bahrain, France (Paris), and Switzerland.

“The action is here (in India),” Chhatwal said.