Shares of EIH Limited traded over a percent higher on August 9 morning, a day after the hospitality chain, which runs hotels under the Trident and Oberoi brands, reported a 61 percent year-on-year (YoY) jump in net profit at Rs 106 crore in the first quarter of the current financial year.
EIH Limited' earnings before interest, taxes, depreciation, and amortisation (EBITDA) grew by 53 percent YoY to Rs 180 crore. Revenue was up 26.7 percent at Rs 522.6 crore.
According to an August report from ICICI Securities, demand drivers such as the G20 Summit, men’s cricket ODI World Cup, wedding season and international tourist arrivals recovering to pre-Covid levels were likely to translate into double-digit revenue per available room (RevPAR) growth for hotels in H2FY24.
Brokerage firm ICRA said the pan-India premium hotel occupancy was estimated at around 72 percent for FY24, up from around 70 percent in FY23 with average room rates (ARRs) across the country at Rs 6,000-6,200 in FY2024.
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ICRA in its July report estimated a 13-15 percent revenue growth for the Indian hotel industry in FY2024, “notwithstanding the potential impact on demand from exogenous shocks, if any”.
EIH Limited owns and manages around 29 hotel in 6 six under the Oberoi, Trident and Maidens brands.
At 10.43 am, the stock was trading at Rs 212.20 on the National Stock Exchange, up 1.14 percent from the previous close.
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