Pick-up in leisure travel helps hotels post sequential revenue growth

Cost cutting initiatives by Indian Hotels, EIH helps restrict loss at the operating level

The December quarter results of the largest hospitality stocks, Indian Hotels and EIH indicates a sequential uptick in revenues led by a pick up in the leisure segment. With the gradual pick up in economic activity, the two companies reported a doubling of revenues over the September quarter. The pace of revenue decline in the first two quarters which was over 80 per cent is down to 60 per cent as compared to the year ago period.

The improvement was on the back of rising revenues per room which was reflected in higher occupancies and average room rates. For Indian