INSUBCONTINENT EXCLUSIVE:
Improvement in key operating variables including occupancy rates and average room rates has benefited select hotels players which followed
strict cost control, cautious expansion and debt reduction
In addition, occupancy rates improved to 65-70 per cent from 58-65 per cent three years ago and average room rates increased by 3-7 per cent
Indian Hotels and Lemon Tree Hotels have shown recovery in the financials
The performance is expected to continue since the second half of a fiscal has historically been good for the sector.
Lemon Tree Hotels, a
mid-sized company, turned profitable in the September 2018 quarter with a net profit of Rs 6.5 crore compared with the loss of Rs 4.4 crore
in the corresponding quarter of the previous year
five-nine percentage points to 30-44 per cent whereas revenue per available room improved by 5-19 per cent across its brands.
Indian Hotels
is another company showing signs of a turnaround
The company reduced its net loss to Rs 5.2 crore in the September 2018 quarter from Rs 57.6 crore in the year-ago quarter
quarter from 131 per cent in the same quarter last year
luxury hotels given increasing affordability.
Analysts point out that the momentum in the sector is likely to continue in the coming
According to the Bloomberg estimates, revenues of Indian Hotels and Lemon Tree Hotels are expected to grow in the range of 9-30 per cent for
