INDIAN HOTELS CO. Ltd’s U.S. business has recovered, with The Pierre in New York and Campton Place in San Francisco seeing steady demand, Business Line reported. The two properties have about 300 rooms combined and contribute approximately 10 per cent of IHCL’s consolidated revenue.
IHCL’s hotel in San Francisco faced several months of low performance, reflecting economic conditions in the city, the Indian business daily said.
“The San Francisco market bottomed out in November and has been trending upward since January,” Puneet Chhatwal, IHCL’s managing director and CEO, was quoted as saying in the report. “We’re seeing growth jump by 40 to 50 percent. Our San Francisco hotel is debt free with a sound capital structure.”
Similarly, the New York hotel’s performance improved, generating a positive EBITDA of $2 million in fiscal 2025.
“For the first time in its history, The Pierre is EBITDA positive,” Chhatwal told Business Line.
According to the report, overall tourist arrivals in the U.S., including from India, have been slow this year due to trade tensions and visa issues. However, Chhatwal said IHCL’s U.S. hotels are not seeing a drop in demand.
“Overall, it is also positive for the international business,” he said.
Overall, its international business—including owned and managed hotels in the U.S., UK, Cape Town, Dubai and Sri Lanka—accounts for 20 percent of consolidated revenue, the report said.
IHCL, parent of Taj Hotels, posted a net profit of Rs 522 crore ($61.1 million) in the fourth quarter of fiscal 2025, a 25 percent increase over the previous year, Business Line reported. Revenue rose 27 per cent, driven by domestic demand and faster-than-expected growth in new ventures such as homestays and food delivery.
On a full-year basis, profit grew 52 percent to Rs 1,908 crore ($223.4 million), driven by double-digit growth in RevPAR. The company expanded its footprint, increasing operating and pipeline hotels to 380.
Chhatwal also announced a Rs 1,200 crore ($140.5 million) capex in fiscal 2025 for hotel upgrades and expansion. This will fund brand enhancement and new market development, he said.
IHCL plans to start construction of the 330-room Taj Bandstand in Mumbai this year.
The company’s loyalty program, Taj InnerCircle—part of Tata Neu’s NeuPass—recently grew fivefold to 10 million members, with loyalty-driven revenue now exceeding 40 percent of IHCL’s total enterprise revenue.
