Royal Orchid Hotels is buzzing in trade, up 5 percent on the back of the new goods and services tax (GST) rates for hotels. In an interview to CNBC-TV18, Amit Jaiswal, CFO of the company spoke about the latest happenings in his company and sector.
Royal Orchid Hotels is buzzing in trade, up 5 percent on the back of the new goods and services tax (GST) rates for hotels. Reports suggest that 28 percent limit on hotels will start for tariffs of Rs 7,500 versus previous proposal of Rs 5,000 and rooms with tariffs between Rs 2,500 and Rs 7,500 will attract 18 percent GST rate.
In an interview to CNBC-TV18, Amit Jaiswal, CFO of the company said that tourism is the biggest contributor to gross domestic product (GDP) of the country. Neighbouring countries having lower tax rates on hotels, the traffic would have gone out of India. “We are at the slab of 21.3 percent. This is a very good news to us,” he said.
India ranks low on tourism, government should focus on improving this, he said.
Jaiswal also believes that business hotels to be biggest beneficiaries because of GST rate. We will pass on the benefit of lower tax to customers, he further said.
Company plans to add 800 new keys this year, currently it has 3,000 keys.
He expects bottomline growth of 20-25 percent in FY18.
“This year we will be crossing 70 percent occupancy and margins will definitely grow,” he said.For full discussion, watch accompanying video...