Indian Hotels net profit up 31%

The country's largest hospitality chain, the Indian Hotels Company (IHCL), posted 31 per cent rise in net profit at Rs 134.58 crore for the quarter ended December 31, 2007 compared with Rs 102.56 crore for the same quarter last year.

The total income of IHCL has gone up by 15 per cent in the quarter ended December 31, 2007 to Rs 527.11 crore compared with Rs 458.23 crore in the same corresponding period.

The growth in profits, according to Raymond Bickson, managing director, IHCL, is driven by a healthy improvement in average room rates and occupancy across the portfolio, backed by a steady growth in its food and beverage business across all key markets.

An aggressive expansion agenda followed in the quarter has allowed the company to sign international management contracts for operating hotels in Saraya Islands in the UAE and also a luxury hotel in the Bhutanese capital of Thimpu "" The Taj Tashi.

The Taj Group is also set to launch five 5-star hotels in Bangalore, Chennai, and Trivandrum and add an additional 150 rooms to the Taj Lands End in Mumbai.

The company will also go ahead with its announced rights issue to raise $600 million. "We have received Sebi approvals and are finalising various formalities and getting clearances. We are looking at a date in mid-March for the issue and will close it by the middle of April," said Anil P Goel, chief financial officer.

The IHCL, however, maintained that there will be status quo on the aggregate investment of $246.9 million that allows Samsara Properties (100 per cent subsidiary) a holding of 11.57 per cent of the Common Stock A of the Orient-Express Hotels.

Shares of the company closed at Rs 140.20, up 3.09 per cent on the BSE.