Economic Timesأخبار اقتصادية
Combo of capital heavy & capital light biz to drive operating leverage, margin expansion: Puneet Chhatwal, Indian Hotels
Puneet Chhatwal, MD & CEO, Indian Hotels, says: “We have become a very high growth company. Our not like for like growth comes from 20 hotels that opened last year and around 15 that opened the year before that and in the last financial year we have signed 53 new contracts, which means signing a contract a week, and we have guided that we will open a minimum of two hotels this year, the guidance is of 25% and our stretched goal is around 30%.
Chhatwal further says that Indian Hotels’ combination of capital heavy and capital light businesses which is today at 40-60 and could grow to 30-70, with 70 in favour of capital light, will drive both operating leverage as well as margin expansion.
Markets always try to look at two basic metrics, which is occupancy rate and what is happening to the ARR, but that is perhaps the sideshow. For me, the real number is that the consolidated revenue for the year gone by growth has been in mid-teens. It is solid, it is stable. Do you think these growth numbers will sustain?
Puneet Chhatwal: Absolutely and that is the guidance we have given on our double-digit top line growth and I will give some factors which makes us believe in that. Number one, the most important demand continues to outpace supply as very limited supply got added during the Covid time and it takes time to build hotels. The demand base is very strong with foreign tourist arrivals yet to go to the pre-Covid phase, that is number one, a very important point.
Chhatwal further says that Indian Hotels’ combination of capital heavy and capital light businesses which is today at 40-60 and could grow to 30-70, with 70 in favour of capital light, will drive both operating leverage as well as margin expansion.
Markets always try to look at two basic metrics, which is occupancy rate and what is happening to the ARR, but that is perhaps the sideshow. For me, the real number is that the consolidated revenue for the year gone by growth has been in mid-teens. It is solid, it is stable. Do you think these growth numbers will sustain?
Puneet Chhatwal: Absolutely and that is the guidance we have given on our double-digit top line growth and I will give some factors which makes us believe in that. Number one, the most important demand continues to outpace supply as very limited supply got added during the Covid time and it takes time to build hotels. The demand base is very strong with foreign tourist arrivals yet to go to the pre-Covid phase, that is number one, a very important point.
Number two, we have become a very high growth company. So, our not like for like growth comes from 20 hotels that opened last year and around 15 that opened the year before that and in the last financial year we have signed 53 new contracts, which means signing a contract a week, and we have guided that we will open a minimum of two hotels this year, the guidance is of 25 and our stretched goal is around 30.
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