Page 6 - Hotel Industry

FHRAI seeks infra status for hotels, convention centres across categories

Federation of Hotel and Restaurant Associations of India has asked the government to grant infrastructure status for hotels across all categories and convention centres built at a project cost of Rs 10 crore and above to give a fillip to budget segment in the hotel industry. In its pre-budget recommendation, the Federation of Hotel and Restaurant Associations of India (FHRAI) also sought GST rationalisation proposing a 12 per cent GST rate across all hotels. "Granting infrastructure status to hotels and convention centres across all cities is crucial for attracting investments and accelerating growth in the hospitality sector," FHRAI President Pradeep Shetty said in a statement. FHRAI said one of the key requests put forward by the hospitality federation to the Finance Ministry was to "grant infrastructure status for hotels across all categories and convention centres built at a project cost of Rs 10 crore and above to give fillip to the budget segment in the hotel industry." Besid

Trade bodies ask Rajasthan govt to focus on ease of doing business

Suggestions were presented by the Hotel Association of Rajasthan to make the state a global tourism destination by 2047

At Rs 100 crore, OYO posts FY24 as maiden profitable fiscal: Ritesh Agarwal

Travel tech platform OYO reported financial year 2023-24 as the maiden profitable fiscal with a net earning of nearly Rs 100 crore, founder Ritesh Agarwal said on Thursday. In a post on social media platform X, Agarwal said he sees growth ahead "not just in India" but also in OYO's other key markets of Nordics, South East Asia, the US and UK. "While a delighted customer or a hotel partner brings the biggest smile on my face, our first cut financials of FY24 have me humbled as well," Agarwal shared. "We had our maiden net profitable financial year at nearly Rs 100 crore. This was our eighth consecutive quarter of a positive EBITDA and we also have a cash balance of around Rs 1,000 crore," he added. He further highlighted that global credit rating firm Fitch has also taken note of OYO's improved performance and strong cash flows, upgrading its credit rating. "I see growth ahead not just in India with emerging travel trends such as premiumization, spiritual travel, business travel an

Oyo eyes equity from private investors at valuation of up to $4 bn: Founder

Private investors have approached travel tech platform OYO and it may raise equity at a valuation of up to USD 4 billion, Founder Ritesh Agarwal told employees in a townhall on Wednesday, sources said. The IPO-bound firm, backed by Softbank, had its maiden net profitable year, posting a profit after tax (PAT) of Rs 99.6 crore (USD 12 million) in the 2023-24 financial year. It also reported an adjusted EBITDA of Rs 888 crore (USD 107 million) for the full fiscal year, up from Rs 274 crore (USD 33 million) in FY23, sources said, citing a presentation shared in the townhall. Oravel Stays Ltd, the operator of the travel-tech company OYO, will refile its initial public offering (IPO) documents with the Securities and Exchange Board of India (Sebi) after the refinancing of its USD 450 million Term Loan B (TLB) at a lower interest rate, PTI reported last week. "OYO has also been approached by friendly investors and may do a small equity round at a USD 3-4 bn valuation, or at Rs 38-45 per

Hotel industry clocks 11% revenue growth per room during Jan-Mar: Report

India's hotel industry saw strong demand at both business and leisure destinations during the January-March period this year leading to an 11 per cent annual rise in revenue per available room, according to JLL. In a statement on Wednesday, real estate consultant JLL India said that the hospitality sector saw an increase in Average Daily Rate (ADR) of 8.5 per cent year-on-year, resulting in a revenue per available room (RevPAR) growth of 11.4 per cent. Chennai recorded the strongest growth in RevPAR at 21.7 per cent in January-March. "Major factors contributing to this growth included an increase in corporate travel, weddings, and Meetings, Incentives, Conferences and Exhibitions (MICE) demand," the consultant said. During the first quarter of 2024, there was a robust demand for hotel rooms in both business and leisure destinations. The occupancy levels in key business markets were strong, averaging around 70 per cent, and supported by significant growth in average daily occupancy

IHCL, partner CG Hospitality eye 25 hotels in Indian sub-continent by 2025

Indian Hotels Company (IHCL) on Thursday announced a strategic partnership with CG Hospitality with a plan to grow its portfolio in the Indian sub-continent to 25 hotels by 2025, involving a total investment of around Rs 4,000 crore. The portfolio of 25 properties by 2025, will include 11 operating hotels with 900 keys and will add another 14, which will be under one platform -- 'Ekyam' -- to pursue opportunities in destinations that offer adventure experiences across the Indian Ocean and Greater Himalayan regions and wildlife escapes, IHCL Managing Director and Chief Executive Officer Puneet Chhatwal told reporters. IHCL's Vice President Commercial Ram Maheshwari will lead the 'Ekyam' platform, he added. "We have a long-standing association with CG Hospitality, a member of the renowned CG Corp Global for over two decades. We are delighted to announce that the next phase of this partnership will pursue accelerated growth in the Indian sub-continent. "This collaboration under the ..

Need for infra status for hospitality sector to bring more investments: HAI

There is an urgent need for the hospitality sector to be granted industry status at state level and infrastructure by the Centre for it to attract more investments and play a part in the development of 50 new destinations announced by the government, according to newly elected president of Hotel Association of India (HAI), KB Kachru. The sector is also hopeful that international tourist arrivals in India will reach pre-pandemic levels by March next year but ease of getting visas needs to be facilitated, while also taking up campaigns to promote the country as a destination globally. "The government has declared 50 new destinations. Investors will be interested to invest money in these destinations if the infrastructure is there," Kachru, who is also Chairman -- South Asia, Radisson Hotel Group, told PTI. He further said,"People will only invest money if the related incentives are given...Unless the industry is motivated to invest in these destinations, we will not achieve what we ..

ITC's Fortune Hotels targets opening a new hotel every month this fiscal

Fortune Hotels, a member of ITC's hotel group, is planning to open a new hotel every month in the current financial year, the company's Managing Director Samir MC said on Wednesday. In an interview to PTI, Samir shared the expansion plans of Fortune Hotels, which has just opened its first international hotel -- Fortune Resort & Wellness Spa Bhaktapur -- in Nepal. He described it as a significant milestone in the company's "beyond borders" expansion strategy, envisioning its presence in South Asia and proximal markets. "Following on the heels of this prestigious opening, we are poised to open at least four to six more hotels in the first half of the fiscal year in unique destinations like Kevadia (Ekta Nagar, Gujarat), Candolim (Goa), Palampur (Himachal Pradesh), and a beach resort in Chennai amongst others and an equal number in H2 (second half: October-March)," Samir said. "This pace aligns with our goal of establishing a new hotel almost every month in this fiscal year, marking .

India's hospitality sector saw investments worth $401 mn in 2023: JLL

Sector has been witnessing a surge since 2023, with 25,176 keys signed and 12,647 keys opened, stated the report titled 'Hotel Investment Trends - India 2023'

Royal Orchid Hotels to add up to 35 properties with 2,000 rooms in FY25

Royal Orchid Hotels is planning to add 30-35 new properties with about 2,000 rooms in the 2024-25 fiscal as part of its expansion plans across India, according to its Chairman and Managing Director Chander K Baljee. The company, which operates hospitality properties under the Royal Orchid and Regenta brands, is also looking to expand its wedding destination portfolio by adding four to five locations every year. "We are expanding very fast. We have already crossed 100 hotels, and I think this coming year (2024-25), have already signed up for another 30-35 (hotels to be added)," Baljee told PTI. In terms of places where these new hotels will come up, he said, "We're looking at all over India. In fact, are we trying to focus on places where we are not present right now like Andhra Pradesh, Telangana and some other places". When asked about the total number of rooms that will be added through the new properties, he said, "I think there should be an addition of approximately 2,000 ...

Radisson Group appoints Nikhil Sharma as MD, to take charge from April 1

Radisson Hotel Group on Wednesday announced the appointment of Nikhil Sharma as the Managing Director and Area Senior Vice President for South Asia, effective April 1. In his new role, Sharma will lead Radisson Hotel Group's operations in the dynamic South Asia region, which has over 165 hotels in operation and development. "Nikhil joins Radisson Hotel Group from Wyndham Hotels & Resorts (WHR) where he served as Market Managing Director Eurasia, overseeing business development, operations, new openings, and sales & marketing," Radisson Group stated. Before his time at Wyndham Hotels & Resorts, he held the position of Chief Operating Officer at Ginger Hotels, a brand under the IHCL conglomerate, the statement added. He was also a founding member of the Lemon Tree Hotel Company and a significant contributor to the growth of India's upscale hotel segment. "Nikhil's appointment reflects our commitment to strengthening our leadership team and driving strategic growth in South ..

IHCL to expand skilling centers by 2025; to impart training to 100K by 2030

Tata Group hospitality firm Indian Hotels Company Ltd (IHCL) is planning to increase the number of skill training centres to 50 across India by next year, apart from accelerating online training in partnership with group firm TCS to meet its target of skilling 1 lakh people by 2030, a senior company official said. The company, which has identified skilling as one of the areas of focus under its environmental, social, and corporate governance initiative Paathya, is focussing on rural areas for the skill training programme and is confident that more than 25 per cent of the 1 lakh people who will be skilled by 2030 will be women. It is trying to play its part in bridging the demand-supply gap of skilled workforce in the hospitality industry, which has witnessed robust growth in the last couple of years after the pandemic. "The industry has come back in a very strong way... In the last few quarters in terms of growth, (if it) is anything to go by, we are looking at a very robust path in

JP Morgan extends Rs 200 cr credit line to boost Oyo accelerator programme

Oyo almost doubled its profit after tax to Rs 30 cr in Q3FY24, compared to the previous quarter's Rs 16 crore

OYO parent firm Oravel Stays plans to launch self-operated premium hotels

Oravel Stays Ltd, the parent company of travel-tech firm OYO, on Thursday announced its plans to launch self-operated premium hotels under the Palette brand, beginning with Morbi in Gujarat. As part of a pilot programme, Oravel Stays had earlier launched Palette with 10 hotels in cities, including Jaipur, Hyderabad, Digha, Mumbai, Chennai, Manesar and Bengaluru. "To ensure enhanced guest experience and service delivery, the company will take direct operational control of select Palette hotels in high-growth and promising locations. Oravel Stays intends to open 12 additional self-operated Palette hotels by the end of the year," it stated. Further, it said the 48-room premium hotel in Morbi aims to cater to the rising demand for premium accommodation amidst the region's booming economic scene. "With its booming economic scene and growing business opportunities, Morbi is an important market for us. We aim to provide business travellers with a premium hospitality experience and look ..

Apeejay Surrendra Park Hotels Q3 net profit rises 46 pc to Rs 27.42 cr

Apeejay Surrendra Park Hotels Ltd on Monday reported a 46 per cent rise in consolidated net profit to Rs 27.42 crore in the third quarter ended December 31, 2023. The company had posted a consolidated net profit of Rs 18.77 crore in the same quarter last fiscal, the newly-listed firm said in a regulatory filing. Total income during the quarter under review stood at Rs 163.61 crore as against Rs 142.64 crore in the year-ago period. Total expenses in the quarter were higher at Rs 102.99 crore as compared to Rs 89.74 crore in the same period a year ago, the company said. This is the first earnings statement by the company which runs hotels under brands, including the Park, Park Collection, Zone by The Park, and Zone Connect by The Park, after its listing on bourses in February.

Chalet Hotels acquires Marriott property Courtyard for Rs 315 crore

The resort, which came up in July 2022, reported an average daily rate of Rs 13,500 till December 2023 with an occupancy rate of 44 per cent, the company added

Indian hotel industry to report 7-9% revenue growth in FY25: ICRA

The Indian hotel industry is expected to register a revenue growth of seven to nine per cent in the next financial year 2024-25, according to a report by credit rating firm ICRA. ICRA said that sustenance of domestic leisure travel, demand for meetings, incentives, conference and exhibitions (MICE) are the factors which will drive demand in the next financial year, despite a temporary lull during the ensuing general elections. The research firm said that spiritual tourism and Tier 2 cities are expected to contribute meaningfully to the overall demand in the next fiscal. According to ICRA, estimates for pan-India hotel occupancy reached a decadal high of 70 per cent to 72 per cent in the current financial year and next fiscal, as compared to 68 per cent to 70 per cent in 2022-23. Pan-India, average room rates (ARRs) are expected to be around Rs 7,200 to Rs 7,400 in the current fiscal, which is likely to rise further to Rs 7,800 to Rs 8,000 in the next financial year. ICRA holds a .

Eco Hotels and Resorts eyes over 2,000 rooms under its ops by March 2025

Eco Hotels and Resorts is targeting more than 2,000 hotel rooms under its operations by March 2025. Earlier this month, the company inked an initial pact with Vitizen Hotels Ltd (VHL) to acquire a 100 per cent stake of VITS in the VHL. With this acquisition, Eco Hotels and Resorts will operate 20 hotels with around 1,200 rooms. At present, Eco Hotels and Resorts does not have any hotel rooms under its operations. Speaking with PTI, Vinod K Tripathi, Executive Chairman of Eco Hotels and Resorts said, "This breakthrough moment marked by the signing of this momentous MOU and its reflection on our team's dedication to reach ambitious goals through clever decision-making." He explained that with this acquisition, Eco Hotels and Resorts will operate 20 hotels with around 1200 rooms, representing a significant step toward their ambitious goal of acquiring over 2000-plus hotel rooms by March 2025. He informed that that the Eco Hotels and Resorts aims to operate 5,000 hotel rooms in India

Mahindra Holidays to invest Rs 4,500 cr to double room capacity to 10,000

Mahindra Holidays & Resorts India Ltd (MHRIL) plans to invest up to Rs 4,500 crore in the next three to four years to double its room capacity to 10,000, according to company Managing Director and CEO, Kavinder Singh. The company is actively pursuing partnerships with state governments besides setting up new resorts, brownfield expansion and acquisitions to achieve the target to increase room count from 5,000 to 10,000 by FY30. "We have all the strategies on the table to get from 5,000 to 10,000 rooms. We are well on our way there," Singh told PTI. At the moment, about Rs 835 crore of investment is underway for five greenfield, brownfield, and acquisition projects, comprising about 690 keys. "We are very confident this investment will get scaled to at least Rs 2,000 crore in the next year and very quickly we will scale it up to Rs 4,000-4,500 crore in three to four years time because you need to deliver 5,000 keys by 2030," he said. On the strategy for expansion, Singh said apart

MCR Hotels to purchase London's iconic BT Tower for around $347 million

The tower used to provide a number of network operations and antennas for connectivity, but the technology isn't needed any longer