Sales at Indian Hotels Co. Ltd, which runs the Taj chain of hotels, went up by around 15% in the three months to 31 December compared with a year earlier on improved occupancy and higher rates.
Analysts said the impressive performance of Indian Hotels and some other listed hospitality companies signals that the sector has finally recovered from the after-effects of the 2008-09 economic slowdown.
Indian Hotels reported sales at Rs.485.34 crore for the December quarter, compared with Rs.437.88 crore in the year-ago period. Net profit, at Rs.50.29 crore, declined 22.48% from a year ago.
The company had then received Rs.15.57 crore as other operating income from an insurance claim for business interruption caused to Taj Mahal Palace and Tower during the 26-28 November 2009 terror attack in Mumbai, boosting net profit to Rs.64.88 crore.
“The third quarter witnessed growth in occupancies for the segment across all key markets despite increase in room inventory in select markets,” said Raymond Bickson, managing director, Indian Hotels. “The rates also improved though the behavioural pattern of all markets was not consistent as would typically be seen during the peak season.”
Bickson said his firm soon plans to launch a new property, Vivanta by Taj Hotels, in Bangalore. The Taj group also opened Taj Falaknuma Palace in Hyderabad in November and is building more properties in Dwaraka, Coimbatore, Chennai, Hyderabad and Bekal in Kerala.
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