 "Mahindra Holidays to invest Rs 500 cr for expansion")
The Mumbai-based company, which part of the $16.2 billion Mahindra Group, will add about 1,000 rooms in two year starting this year to take its room count to about 3,500 rooms from 2,480 rooms presently.
The investment planned for the reporting period is of the same value done by the company is the last two years when it added a total 1,000 rooms.
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Rajiv Sawhney, managing director and CEO, Mahindra Holidays, said, "We would be adding at least 1,000 rooms in two years. For adding 1,000 rooms in the last two years we made an investment of Rs 500 crore, the investment required for this expansion will b something similar".
MHRIL has a land bank in 10 locations which is capable of helping the company add more than 800 rooms. The company has 44 properties spread across the country with abut 165,000 members. About 17,000 new members were added last year.
"Work on new properties in Simla and Kanha has already begun. We have also bought land in Goa for a future property. We are also increasing capacity at our Munnar, Kerala resort", added Sawhney.
The debt-free company intends to fund the expansion program entirely through internal accruals. Last financial year MHRIL reported a n operating income of Rs 702 crore, which was a rise of 13% as compared to Rs 622 crore posted in 2011-12.
MHRIL follows a asset-heavy strategy as about 70% of its properties are owned by the company. It is expected that the company will continue to operate in the ownership pattern, said Sawhney.
Further, international expansion in also on the anvil. After signing deals in Dubai and Bangkok, the company is looking at Sri Lanka and Malaysia for setting up properties. the company is targeting locations which are favourably connected by low cost airlines and frequented by Indian nationals.
The time-share (vacation ownership) market in India is about 300,000 presently.