Business Daily from THE HINDU group of publications
Saturday, Oct 31, 2009
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Business Daily from THE HINDU group of publications Saturday, Oct 31, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
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Corporate Results
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Hotels Web Extras - Performance Indian Hotels net crashes 76% Our Bureau Mumbai, Oct. 30 With the recession hitting corporate and leisure travel, Indian Hotels Company reported a net profit of Rs 12 crore for the second quarter of this fiscal, down 76 per cent from Rs 51 crore in the same period last year. Going forward, the management of the Taj Group of Hotels will prioritise higher occupancies rather than hope for higher room tariffs. “There are enough indications that the worst is behind us and there should be no further fall in volumes. The focus for the next six months will be to grow volumes and not really chase the rates. Once you get customers back, the market will progressively decide what the rates are,” said Mr Anil P. Goel, Executive Director-Finance.
“There is still a softening of the average rates but there is a turnaround in the occupancy. The Revpar (revenue per available room) has been positive and that is as well with over 1,500 new rooms across our markets throughout the country,” said Mr Raymond Bickson, Managing Director. Total income was down 17 per cent to Rs 330 crore (Rs 399 crore). However, compared to the preceding quarter, RevPar was up of six per cent to Rs 4,449 (Rs 4,189), which is the actual indicator of the hotel sector’s performance. “We see visibility of improvement in activity. The Delhi and Mumbai markets are showing signs of growth. Enquiries and group bookings are also coming back,” said Mr Goel. The company has strongly focused on cost reductions and liquidity enhancement, said a statement. Expenditure was down to Rs 281 crore from Rs 300 crore same quarter last year. Vacant rooms hit hotels’ profits Indian Hotels may explore new debt servicing options Drop in occupancies hits Indian Hotels net More Stories on : Hotels | Performance
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