Indian Hotels Faces Malware Attack, Business Operations Remain Steady

Tata Group-owned Indian Hotels Company Ltd (IHCL) recently reported a malware incident impacting selected IT systems. On September 4, the company announced that it quickly acted to contain the situation and secure its systems.

IHCL stated that it has informed relevant authorities and is closely monitoring the ongoing situation. Despite this incident, the company assured that its business operations remain unaffected and are continuing as usual.

## First Quarter Results

Indian Hotels showcased a consolidated net profit of ₹296 crore for the quarter ending June 30, a rise from ₹248 crore in the same quarter last year. Revenue from operations surged by 31.7% to reach ₹2,041 crore, while EBITDA increased by 28.1% to ₹576 crore. However, the EBITDA margin experienced a slight dip, reducing from 29% last year to 28.2% this year.

IHCL successfully signed contracts for 12 new hotels during the quarter, pushing its total portfolio beyond 390 properties. The openings included a Taj hotel in Alibaug, two SeleQtions resorts in Lakshadweep, and a Ginger hotel in Dehradun. Internationally, the company added three luxury wildlife lodges in South Africa’s Kruger National Park under the Taj brand.

“Despite geopolitical challenges, the hospitality sector continues to demonstrate resilience and growth,” said Puneet Chhatwal, Managing Director and CEO.

Domestic same-store hotels showed an impressive 11% growth in revenue per available room (revPAR), achieving a 60% premium over the industry average. International operations saw a remarkable improvement of 460 basis points in occupancy, reaching 78% and resulting in a 13% increase in revPAR.

TajSATS, IHCL’s catering division, reported a robust revenue growth of 21%, totaling ₹290 crore, with an EBITDA margin of 23.5%. New business initiatives—including Ginger, Qmin, amã Stays & Trails, and Tree of Life—witnessed a consolidated revenue rise of 27%, amounting to ₹162 crore.

On September 4, shares of Indian Hotels Company Ltd closed at ₹776.90, reflecting an increase of ₹2.95 or 0.38% on the BSE.

What are your thoughts on the impact of these developments on the hospitality industry? Let us know!