The shares of one of the fastest-growing hospitality jumped up to 6 percent after the company signed up management agreement for a new property in Surat, Gujarat.
With a market capitalization of Rs 954.40 crore, the shares of Royal Orchid Hotels Ltd were trading at Rs 348.00 apiece, increasing around 5.37 percent as compared to the previous closing price of Rs 330.25 per share.
According to the company filing, Royal Orchid Hotels Ltd. has inked a management agreement for a proposed 5-star hotel in Surat, Gujarat. ROHL will operate the new resort in conjunction with Hindva Hospitality, LLP. ROHL will manage this property under a new upmarket brand that will be unveiled shortly.
Furthermore, The hotel will include 288 well-appointed luxury rooms, three restaurants, six conference rooms, one exhibition hall, and a full-service wellness and spa. The hotel, which is set to open in May 2024, intends to draw visitors and guests from all across the country due to its rich historical and cultural tradition
Moreover, the company signed this agreement with the intention of fully capitalizing on the immense potential of this state, its strategy is to operate hotels in diverse locations throughout the state.
Looking into Royal Orchid Hotels Ltd’s performance, revenue increased by 14 percent from Rs 72 crore in Q3 FY23 to Rs 82 crore in Q3 FY24. During the same period, net profit increased by 6 percent, from Rs 15 crore to Rs 16 crore.
The basic profitability ratios of the company such as the return on equity (RoE) as well as the return on capital employed (RoCE) increased with the former shifting from 23.45 percent during FY21-22 to 27.18 percent during FY22-23, and, the latter moving up from 7.32 percent to 23.15 percent.
As per the latest shareholding data for the December 2023 quarter, the company’s Promoters hold a 63.6 percent stake, and the Foreign Institutional Investors (FIIs) hold a 4.79 percent stake in the company.
Royal Orchid Hotels Limited operates and administers hotels and resorts around the country, as well as offers related services. It features hotels including Regenta Resort Vanya Mahal, Regenta Camellia Resort and Spa, Santiniketan, Regenta Resort Central, Regenta Almeida, and Regenta Orkos.
Written by:- Abhishek Singh
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