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The company, which, along with its domestic peers, felt the pressure on demand due to increased inventory during the quarter, had posted a Rs 49 crore consolidated net profit for the corresponding quarter last year.
Net consolidated sales during the reporting quarter grew by 5 per cent to Rs 1060 crore as compared to Rs 1006 crore reported in the same quarter last year. Net profit at the standalone level grew by 28 per cent to Rs 64 crore for the quarter as against Rs 50 crore posted in the same quarter last year.
Centers like Chennai and Hyderabad saw new inventory in the form of properties from ITC, Leela and Hyatt. This led to an overall industry-wide drop of 10 per cent in revenue per available room however IHCL undertook as marginal rise of around 2 per cent on an average basis.
The company also said that there will be an addition of 13 hotels in the coming financial year which will add 1,710 rooms. These will be a mix of Taj, Vivanta, Gateway and Ginger properties. Its 100th property in India has come up in Gurgaon (Vivanta) and will officially open next month.
Raymond Bickson, managing director, IHCL said, "Most of the new supply (in the industry), about 60 per cent, has come up in upper upscale and upscale segment."
The company also said that it is in negotiations with the Mumbai Port Trust (MPT) for renewing the lease of the Taj Mahal Palace, Colaba and fix the appropriate rental on the property which was leased by MPT to it.
"We have a two hundred year lease, the issue will be resolved amicably with the Port trust. We are paying already paying what MPT asked us to pay for the last six years. There is a discussion going on for a further review of rent. It is an automatic extension for another 100 years," said Anil Goel, director finance IHCL.
Further, IHCL also said that its board will meet once again before the close of the current financial year to consider a suited response to Orient Express Hotels. The Bermuda-based hotel chain had rejected IHCL's $1.86 billion offer for a takeover last calendar year.
