Oriental Hotels Ltd, a Chennai-based hospitality firm in which the Taj group owns 34.47 per cent stake, is planning to open a 180-room Vivanta by Taj hotel in Coimbatore.
The construction of the Vivanta by Taj is expected to start during October-November this year. Currently, the company runs eight hotels, including two in Chennai and one each in Madurai, Coonoor, Mangalore, Visakhapatnam, Kochi and Thiruvananthapuram.
The company is also expanding the Vivanta by Taj-Fisherman's Cove in Chennai, by adding one more block with 64 guest rooms, to its current 106-room capacity. “Out of the 64 rooms, only 14 rooms are under construction and the rest are completed,” the company annual report said.
It is carrying out renovation work for the Taj Coromandel hotel in Chennai, and has completed works of a new swimming pool, retail shops, lobby, reception, lounge and entrance area.
The expansion plans including the new hotel, addition of rooms, and renovation projects in Chennai, has lead the company to a capital expenditure of Rs 87.17 crore in last fiscal, according to the annual report.
It has reported an 18.20 per cent increase in its total income for the year 2010-11, at Rs 239.04 crore, as against Rs 202.23 crore last year.
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The occupancy has increased to 68 per cent during this year, as against 62 per cent last year. And the room income increased 22.98 per cent during the financial year to Rs 122.29 crore, as against Rs 99.44 crore posted in the previous fiscal.
During the first quarter of this financial year, the company has posted an increase of 94.05 per cent in its net profit at Rs 3.26 crore, compared to Rs 1.68 crore reported during the same period last year.
And its total income stood at Rs 54.98 crore in the first quarter, as against Rs 48.27 crore in the corresponding quarter last year, registering an increase of 13.9 per cent.
Oriental Hotels Limited was incorporated in 1970 as a public limited company. The promoters hold 22.81 per cent of the total shares, whereas the public has 19.19 per cent holding in shares, the report added.