The leading hotel shares opened at a high of around 1 percent Rs 415.45 from its previous close of Rs 412.65 after it announced the expansion of the company.
Indian Hotels Company (IHCL), the operator of the Taj hotel brand, plans to open 24 more hotels under its budget Ginger brand in the next 2-2.5 years, bringing the total to 86. The move will also assist Tata Group in expanding the brand to another 20 cities as per Financial Express Report.
The Ginger brands primarily operate on a ‘lease model,’ with the company leasing the properties for 10-30 years. Ginger’s total key strength would be 8,500 keys spread across 86 hotels. Ginger, on the other hand, has yet to announce plans to launch properties outside of the country.
According to the Indian Hotels report, the company’s net revenue decreased 16.27 percent year on year from Rs 1,232.6 crores in Q2FY23 to Rs 1,433.2 crores in Q2FY24. On a quarter-on-quarter basis, their revenue declined 2.2 percent from Rs 1,466.3 crore in Q1FY24 to current levels.
In addition, net profit rose 38.1 percent year on year, from Rs 129.59 crores in Q2FY23 to Rs 178.97 crores in Q2FY24. On a sequential basis, their net profit plunged by 24.1 percent from Rs 236.01 crores in Q1FY24 to current levels.
The majority stake in Indian Hotels is held by promoters at 38.19 percent, followed by foreign institutional investors at 22.25 percent, domestic institutional investors at 23.28, and the remaining portion belonging to the public
The share price of the large-cap Indian Hotels Company (IHCL) has climbed by 30% year-to-date and by 12% over the past six months.
Ginger opened its first hotel in Bengaluru in 2004, and it is a midscale brand in the company’s portfolio. IHCL opened another Ginger brand hotel in Mumbai on Thursday, Kochi earlier in June, and Gangtok (Sikkim) in November. The company has already opened five facilities across the country this fiscal year.
The Indian Hotels Company (IHCL) intends to increase Ginger’s footprint from its current 40 cities to 60 by opening at least 10 hotels annually in both new and existing cities. Strong travel demand is fueling the new hotel openings, which will be located in a variety of markets including Agra, Ahmedabad, Durgapur, Dehradun, Goa, and Gangtok.
The Indian Hotels Company Ltd is primarily involved in the ownership, operation, and management of hotels, palaces, and resorts.
Written by Sriram KV
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