Oriental Hotels expects recovery to be driven by domestic leisure, tourism
Oriental Hotels Ltd, an associate company of The Indian Hotels Company Ltd, on Wednesday said the company expects business recovery to be driven by domestic leisure and business tourism.
The company, which has seven hotels including Taj Coromandel, Taj Fisherman’s Cove Resort and Spa, Chennai, recorded a standalone net loss at Rs 4.97 crore for the quarter ending September 30, 2021 as against a net loss of Rs 17.71 crore recorded during corresponding quarter previous year due to the impact caused by the Covid-19 pandemic.
Revenue during the quarter grew to Rs 53 crore from Rs 17.93 crore recorded in corresponding quarter previous year.
Commenting on the financial performance, company Managing Director Pramod Ranjan said, “with easing of lockdown restrictions, post the second wave of Covid-19, the company witnessed significant recovery in the current quarter”.
“Predominantly the business came from leisure and wedding segments. The company declared a positive performance despite the restrictions in Kerala. Revenue grew by 196 per cent while EBITDA by 143 per cent over Q2 FY20-21”, he said in a company statement.
In Kerala, the company operates Taj Malabar Resort and Spa, Cochin. In Tamil Nadu, Vivanta in Coimbatore, The Gateway Hotel Pasumalai in Madurai.
On the impact of Covid-19, the company said business has been impacted during the half year period on account of the pandemic. During the first three months of the financial year, the company witnessed softer revenues due to the second wave of Covid-19 and consequent lockdowns in several states across the country.
However, during the beginning of the second quarter, the lockdowns were lifted due to lower active Covid-19 cases and increased vaccinations and the company witnessed positive recovery of demand, especially in leisure destinations and business gradually expected to improve.
The company has undertaken a series of actions to ensure adequate liquidity and cost optimization. Cash conservation measures have included deferral of discretionary spending and capital expenditure, unless absolutely required, it said.
“We expect the recovery in business to be driven by domestic leisure and tourism. We do not expect any significant challenges to our supply chain..”, the statement added.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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