The Royal Orchid Central is the first property of the company in Ahmedabad which will have 104 rooms. In addition to this, the company is also setting up three greenfield hotels in Hyderabad, Jaipur and Mumbai. These three hotels will have a combined room inventory of close to 500 rooms, Chender Baljee, chairman and managing director, ROHL told Business Standard.
"We are also undertaking a modernisation of select hotels this year. To begin with we will renovate Royal Orchid hotel in Bangalore. We are currently finalising the exact details of the modernisation plan", he said.
Baljee said the company will complete the renovation and upgradation of Hotel Harsha and a resort at Doddi near Bangalore during the current year. Hotel Harsha, which is being upgraded to 4-star category with 80-100 rooms, will be the first hotel to be launched under Ramada hotel brand. The hotel is being renovated at an investment of Rs 10 crore. It will be opened in August this year, he said.
Meanwhile, ROHL has reported a drop of 13.11 per cent in its net profit at Rs 9.08 crore for the fourth quarter ended March 31, 2008 compared to the corresponding quarter of last financial year. The drop was mainly on account of higher depreciation and deferred taxes resulting from acquisition of two new properties during the year.
ROHL earned a total revenue of Rs 40.46 crore during the quarter, a growth of 10.8 per cent over the same quarter last year. For the full year ended March 31, 2008, the company reported a net profit of Rs 32.27 crore, a decline of 8.4 per cent over the previous financial year. The total revenue for the period went up by 10.4 per cent to Rs 136.76 crore compared to the previous year.
Last financial year, ROHL invested close to Rs 100 crore on expansion of its network which included acquisition of Royal Orchid Central at Manipal Centre, Bangalore that was previously leased and Royal Orchid Central in Pune commenced commercial operations. It has added 115 rooms to the Group's room inventory. The group currently operates 11 hotels across the country.