India: hotels expanding aggressively despite COVID-19 success

The Indian Hotels Company (IHCL), which owns the Taj hotel group, is seeking a full turnaround when the impact of COVID-19 wears off. It recorded the highest number of new hotel signings and openings in the industry in fiscal year 2020-2021 – with 17 signings and seven new hotel openings.

The company follows an asset-driven growth strategy and development goals through management contracts of around 80%. It opened seven hotels in the last fiscal year adding more than 700 rooms to its operational inventory, including The Connaught in Delhi.

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The company reported positive earnings before interest, taxes, depreciation and amortization (EBITDA) of Rs 83 crore in the fourth quarter of FY21 – an increase of 118 percent from Q3b FY21. The pandemic has severely dented the company’s annual figures and reported a net loss of Rs 720 crore in fiscal year 2020-21 compared to Rs 354 crore the previous year. In the January-March quarter, the loss was Rs 91 crore against a profit of Rs 74 crore.

IHCL’s revenue fell 62% to Rs 1,740 crore in 2020-2021. IHCL shares edged up and closed at Rs 111.45 on the BSE on Friday, when the Sensex slumped nearly 2 percent.

Puneet Chhatwal, CEO and Managing Director of IHCL, said: “Despite the continued challenges associated with the pandemic that have impacted the travel and hospitality industry, IHCL has remained focused on executing its strategy. of RESET. and followed rigorous expenditure optimization and financial prudence measures. ”

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Giridhar Sanjeevi, Executive Vice President and Chief Financial Officer of IHCL, said: “Our constant focus on performance, managing operational costs and continued efforts to build liquidity has helped IHCL survive this extremely difficult phase, and we will continue our multiple efforts to continue to grow and be profitable. ”

Taj Hotels has offered more than 1,400 rooms as quarantine facilities to its partner hospitals. During the pandemic, IHCL’s home food delivery platform under the Qmin brand was expanded to 14 locations across India.

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