Hospitality chain EIH Limited, the flagship company of the Oberoi Group, reported a profit of Rs 94 crore in the September quarter of FY24, a YoY jump of more than 300 percent from Rs 22.35 crore in Q2 FY23.
The company recorded consolidated revenue of Rs 552.5 crore and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of Rs 164.9 crore in Q2.
“Our company has achieved exceptional financial results in the second quarter of FY24. We've seen significant growth in both revenue and profitability. We remain committed to providing outstanding hospitality and expanding our presence in key markets,” said Arjun Oberoi, Executive Chairman, EIH Ltd.
In FY23, the company reported the highest-ever revenue income, making it a record year for the hotel chain due to the spike in travel demand post-Covid.
Brokerage firm ICRA expects the Indian hotel industry to report double-digit revenue growth in FY24, owing to the sustenance of domestic leisure travel, demand from meetings, incentives, conferences, and exhibitions (MICE), and business travel, along with an increase in foreign tourist arrivals (FTAs).
The industry has also benefitted from the G20 summit and the ongoing ICC
World Cup 2023.
It estimates pan-India premium hotel occupancy at 70-72 percent in FY24, after recovering to 68-70 percent in FY23.
Pan-India premium hotel average room rates (ARRs) are expected to be at Rs 6,000-6,200 in FY24, according to ICRA analysis.
“Demand is expected to remain strong across markets in FY24 as consumer sentiments continue to be healthy and corporate performance is stable. Hotel-specific demand, would, however, depend on location, competition, and other property-related dynamics. Further, domestic tourism would be the prime driver, although FTAs (foreign tourist arrivals) are likely to pick up in H2 FY24. Mumbai and Delhi, being gateway cities, are likely to report occupancy north of 75 percent in FY24, benefitting from transient passengers, business travellers, and MICE events," said Vinutaa S, Vice President and Sector Head – Corporate Ratings, ICRA Limited.
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