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| IHCL net dips 80% |
| BS Reporter / Mumbai Jul 31, 2010, 00:45 IST |
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Indian Hotels Company (IHCL), Asia’s largest hotel chain, today reported a standalone net profit of Rs 3.33 crore, a decline of 79.74 per cent for the quarter ended June 30.
The company, which runs the chain of Taj Hotels in India and abroad had reported a net profit of Rs 16.44 crore for the same quarter a year earlier.
There was a one-time gain of Rs 38.77 crore on account of profit on sale of investments during the corresponding quarter of last year. Raymond Bickson, managing director, IHCL, said, “Most key markets showed improvement in demand with growth in occupancies whilst the rates remained plateaued considering that we were in off season”.
While the average room rates (ARR) during the quarter at Rs 8,008 remained marginally below the corresponding period of last year, which stood at Rs 8,052, room occupancies showed growth to 64 per cent from 52 cent during the two comparable quarters. The company reported net sales of Rs 328.74 crore for the reporting quarter against Rs 262.36 crore posted same quarter a year earlier.
Senior IHCL officials also stated today that the entire heritage wing of the Taj Mahal Palace and Tower, which suffered extensive damage during the terrorist attack in 2008, will be reopened on August 15.
The company has spent about Rs 180 crore on renovation and restoration of the heritage wing. A portion of this amount would be reimbursed by the insurance company, while the rest will be reported as company expenditure.
The company has altered the capacity of the heritage wing while redoing the ultra luxurious Tata suite, one of the most expensive suites in the country and which is frequented by head of states and various companies. It has also added a new duplex suite to the hotel.
Rising room occupancies across most of its properties have given the company enough headroom to raise room rates in the ensuing season which starts post October. The company will revisit its rates in the coming months as demand is picking up, however the quantum of hike will be decided later.
At least one new hotel will be opened by the company at a frequency of every three weeks this year including the Taj Falaknuma, Hyderabad. The company is targeting an addition of 13 new hotels every year, which will be done under its own banner as well as through associated hotels, joint ventures and through subsidiaries like Ginger Hotels.
During the year, the company had divested ownership of its hotel in Baramati, Maharashtra and booked a profit of Rs 4.29 crore.
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