EIH Associated Hotels surges 17%, hits record high on bonus issue plan

EIH Associated Hotels said that its board will meet on Friday, June 14, 2024, to consider and recommend, capitalisation of reserves by issuing bonus shares to the equity shareholders of the company

Shares of EIH Associated Hotels hit a record high of Rs 845 as they surged 17 per cent on the BSE in Monday's intraday trade, after the company announced that its board will meet on Friday, June 14, 2024, to consider and recommend capitalisation of reserves by issuing bonus shares to the equity shareholders of the company.

The stock price of the Oberoi Group hotel company surpassed its previous high of Rs 839.10, touched on April 9, 2024. In the past three days, it has zoomed 25 per cent, while, in the past seven months, the stock price has nearly doubled from Rs 429.35. At 10:11 AM, the stock was trading 15 per cent higher at Rs 828.40 as compared to 0.10 per cent decline in the S&P BSE Sensex.

EIH Associated Hotels is primarily engaged in owning premium luxury hotels under the luxury 'Oberoi' and five-star 'Trident' brands.

For the financial year 2023-24 (FY24), EIH Associated posted 25.4 per cent year-on-year (Y-o-Y) growth in its profit after tax at Rs 81.03 crore, as against Rs 64.62 crore in FY23. Revenue from operations were up by 14 per cent Y-o-Y at Rs 384.78 crore.

India's position as the fastest growing economy is driving the nation's economic progress and empowering individuals with greater purchasing power. One of the sectors reaping the rewards of this strong growth is the travel and hospitality industry, which not only enhances connectivity between destinations but also makes travel more accessible and affordable for consumers. This positive trend propels the industry forward, creating a host of opportunities for both businesses and travellers alike.

"In recent times, there has been a noticeable change in the preferences of both international and domestic tourists visiting India. While the country has long been known for its religious sites, which attracts a large influx of tourists, there is now a growing demand for clean, hygienic and family-friendly accommodations that go beyond traditional tourist destinations. This shift in preferences reflects the evolving needs and expectations of travellers, paving the way for new opportunities and positive transformations in the tourism industry," EIH Associates had said in its FY23 annual report.