Taj Hotel parent posts 37% rise in Q2 profit, revenue up 18%

livemint.com:

Mumbai: The Indian Hotels Co. Ltd which operates the Taj brand of hotels besides SeleQtions, Vivanta and Ginger Hotels, reposted a consolidated net profit of ₹167 crore in the September quarter, up 37% from a year earlier. Its revenue grew 18% to ₹1,481 crore, while consolidated earnings before interest, taxes, depreciation and amortization (ebitda) was up 26% to ₹402 crore.

Ebitda margin expanded by 180 basis points to 27.2%. “We are pleased with the performance. This is the best-ever second-quarter performance and key focus remains to be most iconic and most profitable brand in the business," Puneet Chhatwal, managing director and chief executive, IHCL told Mint in a post-earnings call.

In the quarter under review, the company signed six hotels, including three under the Taj brand, in its international markets, a 134-room property in Frankfurt, besides two hotels in Bhutan, and two SeleQtions hotels (Himachal Pradesh and Goa), and one Ginger hotel in Assam. The company has also opened three hotels, taking its total operating assets to 192 across brands, including two Taj hotels—Taj The Trees in Mumbai and Taj Guras Kutir Resort and Spa, Gangtok. The SeleQtions brand launched its first property in Indore with a 125-room hotel.

“The momentum continued and IHCL is on a roll. We have opened eight hotels this year and will open more. There is a strong demand and positive sentiment, which is making it a bullish environment for the entire industry.

We are outperforming in industry metrics like average rates, occupancy and RevPAR (revenue per available room)" he said. IHCL’s domestic hotels had an average room rate (ARR) of ₹9,300 per night, compared to industry average of ₹6,700. Its occupancy was at 70% for the quarter, as