Hospitality major EIH Ltd expects strong demand and occupancy in the third and fourth quarters of this fiscal after witnessing moderation in the April-June period due to elections and heatwave, according to its Managing Director and CEO Vikram Oberoi.
The impact of this year's general elections on demand was higher compared to the previous elections, he told analysts.
"Really, as a function of supply and demand, we had the election this year and I think at least our analysis shows that when compared to previous elections, which we looked over the previous election, we looked at the impact on this election has been more than in the previous election. We looked at the last election as well," Oberoi said.
Besides, he said in many cities in Rajasthan where the company has leisure hotels and in Agra, temperatures have been extremely high this summer.
"We still remain optimistic that foreign travel is bouncing back. And with strong Indian demand from the domestic market for luxury hotels and luxury travel, we should be able to take rates up. But that's under the assumption that demand remains strong," Oberoi said in response to a query on demand outlook.
He further said, "Therefore, we should see strong demand and occupancy, both reflected in rate and occupancy, particularly in Q3 and Q4 of this financial year.
Reflecting on the demand trend in the first quarter, Oberoi said, "April was very good. May and June weren't as good, both because of the elections and the high temperatures in many locations where we have hotels." On the expansion plans of the company, which owns and operates hotels and resorts under the Oberoi and Trident brands, Oberoi said EIH Ltd will continue to focus on India although it is looking at opportunities outside India as well.
At present, the company has seven projects that are in the pipeline which are under construction or about to start construction, out of those three are company-owned properties, three are owned by its subsidiaries or associates and managed by EIH, and one is on a management contract.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
