East India Hotels (EIH) Ltd, which owns and operates Oberoi and Trident hotel brands, reported 10.2 per cent growth in revenue to Rs 271.16 crore in the three months ended June 30, 2013 compared with Rs 246.03 crore in Q1 FY13.
The country’s second-largest hotel chain operator which counts Mukesh Ambani-led Reliance Industries (RIL) as an investor, has reported growth of around 11.64 per cent in net profit for Q1 FY14. The company’s net profit rose to Rs 10.55 crore compared with Rs 9.45 crore for Q1 FY13.
EIH had posted a similar revenue growth in Q4 FY13 over the corresponding period in the previous year but had seen its net profit shrink significantly.
The Indian hotel industry, which was earlier either dominated by old hotel brands like Taj and Oberoi or local standalone budget hotels, has over the last few years seen entry of many players, including new homegrown domestic brands.
The hospitality sector has been facing a slowdown amidst the economic slump and the luxury segment has been the worst hit due to growing competition and oversupply of rooms in the market. However, the recent depreciation of Indian currency has made Indian holidays cheaper for foreign tourists which may boost the fortunes of the hotel firms.
At present, The Oberoi Group operates 28 hotels across five countries under its Oberoi and Trident hotel brands.
The public listed parent EIH counts RIL and ITC as its key shareholders. RIL bought into the firm a few years ago and was seen as a white knight for the promoters who were apparently facing a takeover bid by ITC, which runs its own hotel chain. At present RIL owns around 18 per cent stake in the firm while ITC owns around 16 per cent.
(Edited by Joby Puthuparampil Johnson)