Indian Hotels Co Ltd (IHCL), the Tata group hospitality flagship, has reported a 42.42% decline in consolidated net loss at Rs19 crore in the first quarter fiscal 2014 over corresponding quarter last year. Total income from operations during the April-June quarter was 7% higher at Rs908 crore on year.
Anil P Goel, executive director-finance, IHCL, said the company saw an occupancy of 59% across the portfolio of hotels in India. “The average room rate (ARR) for the quarter at Rs8,300 was slightly lower as compared with the last year.
Operating margins, at 11%, were in line with last year. We have been able to bring down financing costs by 23% over the previous fiscal,” he said.
With the Indian hospitality set to enter the business season in the next 45 days, the company is hopeful of marginally increasing the room rates.
Deepa Misra, senior vice president–sales and marketing, IHCL, said there has been an overall 20% increase in supply of hotel rooms during April–June, 2013 over last year.
“Most of the new supply (about 69%), has come in the upper upscale, upscale and midscale segments and 28% in luxury (largely Chennai and Hyderabad). Demand growth has been 17% for this period. However it is still trailing supply growth by 3% which has had an impact on the hotel industry occupancy and average room rates (ARRs),” she said.
On the international business front, Goel said the portfolio has performed very well with all the three hotels in the US reporting encouraging results in the first quarter.
“Both Boston ($300 - ARR) and San Francisco ($300 - ARR) have touched 80% occupancy while it is 77% at The Pierre ($640 - ARR) against 65% last year. We will be looking to increase the ARRs in these markets.
“The UK market has been quite stable, Maldives is likely to stabilise by the time we get into the business season, hotels in Sri Lanka, Malaysia, Bhutan and Sydney are doing fine as well,” said Goel.
As of August 2013, the company has a total inventory of 14,506 rooms. In the current fiscal, IHCL will add 12 hotels (mainly through management contracts) and inventory of 1,575 rooms.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}