IHCL Reports First Quarter FY 2020-21 Results
Implements R.E.S.E.T 2020 strategy aimed at mitigating the impact of COVID-19
- Signed a binding agreement to acquire 100% shareholding in ELEL Hotels and Investments Limited (ELEL) for the iconic Sea Rock hotel
- Restructured holding of Taj Cape Town, which becomes a wholly owned subsidiary of IHCL, by acquiring 50% of holding in Tata Africa Holdings (TAH)
- Launched Qmin, a repertoire of culinary offerings including home delivery, in addition to its proprietary Qmin App for ease of use
- The Company signed two hotels in the quarter - a Vivanta in Lucknow and an IHCL SeleQtions hotel in Tadoba Andhari Tiger Reserve, Maharashtra
- Introduced I-ZEST - IHCL'S Zero-Touch Service Transformation by leveraging technology for customer and employee experiences
- The Taj Mahal Palace, Mumbai has been accorded the highest guest satisfaction score amongst its hospitality peers globally for the third consecutive time by TrustYou
- Supported the community in its effort to combat the pandemic by delivering 2.4 million meals to the medical fraternity and migrant workers, and hosting 55,000 room nights for the medical community
KEY CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30th, 2020
Commenting on the performance, Mr. Puneet Chhatwal, Managing Director and Chief Executive Officer, IHCL, said, "The global travel and tourism industry was at a virtual standstill in the last three months, which had a big impact on the hospitality sector. While over 50% of IHCL hotels were closed for most part of Q1 due to government lockdowns, we implemented R.E.S.E.T 2020, a strategy to mitigate the impact of COVID-19; and several revenue enhancement and spend optimization measures initiated have started yielding results. We remain confident, given the strength and power of our brand and our market leadership, that we will weather this disruption and emerge stronger."
R.E.S.E.T 2020, a comprehensive five-point strategy, provides a transformative framework to help the Company overcome the COVID-19 related challenges and achieve revenue growth while optimizing expenditure and strengthening balance sheet and at the same time, continuing on its path of excellence.
- Revenue Growth - Implemented a host of new revenue generation initiatives such as [email protected], Qmin and rolled out various campaign offers like 4D - Dream, Drive, Discover and Delight, Urban Getaways and Bizcation to stimulate and capture domestic demand
- Excellence - Enhanced SOP's under Tajness - A Commitment Restrengthened and I-ZEST: IHCL's Zero-Touch Service Transformation, which ensures heightened safety for guests and employees through a host of digital and service interventions
- Spend Optimization - Leveraged opportunities across all cost heads to rationalize resources and optimize expenditure
- Effective Asset Management - Continuing to undertake renegotiation of contracts and lease rentals, while monetizing assets
- Thrift and Financial Prudence - Taking necessary steps to ensure adequate cash flows while reducing the corporate overheads of the company
Mr. Giridhar Sanjeevi, Executive Vice President and Chief Financial Officer, IHCL, said, "We have taken substantial steps to preserve liquidity. In addition, we are rationalizing all costs and maintaining the highest financial prudence. This will assist us in managing the evolving situation."
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About The Indian Hotels Company Limited (IHCL)
The Indian Hotels Company Limited (IHCL) and its subsidiaries bring together a group of brands and businesses that offer a fusion of warm Indian hospitality and world-class service. These include Taj- the hallmark of iconic hospitality and India's Strongest Brand as per Brand Finance India 100 2020 report, SeleQtions, a named collection of hotels, Vivanta, sophisticated upscale hotels and Ginger, which is revolutionising the lean luxe segment.
Incorporated by the founder of the Tata Group, Jamsetji Tata, the Company opened its first hotel - The Taj Mahal Palace, in Bombay in 1903. IHCL has a portfolio of 205 hotels including 44 under development globally across 4 continents, 12 countries and in over 100 locations. The Indian Hotels Company Limited (IHCL) is South Asia's largest hospitality company by market capitalization. It is primarily listed on the BSE and NSE.