Mahindra Holidays, India’s biggest timeshare leisure stay company, will spend Rs 1,000 crore in acquiring, expanding and setting up new resorts across the country.
The company will add new properties in Goa, Maharashtra and a host of other locations over a period of three to four years. This will push up the inventory to a minimum of 5,000 rooms from the current total of 3,600 rooms.
Speaking to Moneycontrol, Kavinder Singh, MD and CEO, Mahindra Holidays, said, “We constantly look for the acquisition of resorts. We have bought land in Ganpatipule (Maharashtra) overlooking the sea and we are building a 150-room resort there. We are building a 150-room resort being built in Assonora, Goa ,which will be operational this year and then another 50 rooms will be added to it. It will be our fourth resort in Goa.”
The company has a resort in Ashtamudi, Kerala where it added a further 56 rooms. Typically a 200-room resort sees an investment of about Rs 180-200 crore depending on the terrain and location.
“We have made plans of investing Rs 1,000 crore. There are many other resorts which will come up in the next three to four years where we have land banks. This will give us 1,200 rooms and another 300-400 rooms will come about through the leasing route. We are 3600 rooms now and we will cross 5000 in three to four years”, added Singh.
The company has a cash reserve of Rs 655 crore on its books and will be using it to fund its expansion plan. Currently, not considering any debt options from the market.
“The company has a cash position of Rs 655 crore and will be using it to fund the expansion plans. We are a zero debt company and will not take recourse to debt to fund our expansion plans. Our occupancies are at 85 percent and in Q1 we had occupancies of 91 percent”, added Singh.
Mahindra Holidays has a membership size of 2.47 lakh which is growing at a cumulative base of 7-8 percent. Around 4,500 new members are added every quarter each of whom bring Rs 3.5 lakh in annual membership fees.
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