Hotel chain operator Indian Hotels Co Ltd, part of the Tata conglomerate, reported flat growth in net profit for the quarter to end-December in line with estimates, on slowing economic growth at home and overseas.
Indian Hotels, which runs the global Taj chain of hotels and resorts, said on Wednesday it expected higher occupancy and revenues in the three months to March, and expects a weakened rupee to increase foreign visitors to its Indian properties.
"The results have been affected by the downturn in the domestic economy and also the continued uncertainty in the key overseas source markets," said Raymond Bickson, managing director and chief executive officer.
Revenue for the quarter beat market expectations thanks to new hotel launches and increased occupancy rates, and the company said it plans to open 12 new hotels under its mid-range Gateway brand in the next couple of years.
The company, whose flagship Taj Mahal Palace hotel in Mumbai overlooks the city's harbour and iconic Gateway of India arch, has added six new properties since April 2011, and had an occupancy rate of 65-68 per cent in the fiscal third quarter.
Net profit in the fiscal third quarter stood at 504.8 million rupees ($10.1 million), little changed from 502.9 million rupees in the same quarter last year. Revenues rose 7.4 per cent from a year previous to 5.21 billion rupees.
Analysts expected profit of 504 million rupees on revenue of 4.94 billion rupees, according to Thomson Reuters.
The company's total debt stood at 36.5 billion rupees on Dec. 31, of which 9 billion rupees was offshore debt.
The hotel group's U.S. business grew around 10 per cent during the quarter compared with 12 months previous, but occupancy was under pressure due to sluggish economic growth in the country, the company said.
The majority of the company's 112 properties are in 55 locations across India, while its overseas portfolio includes hotels and luxury resorts in south-east Asia, Africa, Australia, the UK and U.S., and the Middle East.
» Read Complete News.....(You need to login first to read complete news). New User? Register for FREE!
» Back to Travel News