Indian Hotels profit up 16%

Indian Hotels Company (IHCL) has posted a 16 per cent of growth in net profit to Rs 53 crore for the quarter ended September 30, 2007, from Rs 45 crore in the corresponding previous quarter.

IHCL's total income rose to Rs 366 crore during the period, from Rs 321 crore in the previous corresponding period, a growth of 14 per cent.

Growth in profits was driven by a healthy improvement in average room rates across the portfolio, backed by steady growth in its food and beverages.

During the quarter, the company, through its wholly owned overseas subsidiary Samsara Properties, acquired a 11 per cent stake in NYSE-listed Orient-Express Hotels for Rs 850 crore.

While the company had proposed to the Orient Express management to pursue an alliance proposal post this acquisition, the Orient-Express management had rejected it due to fear of a takeover attempt, early last month.

The company has 84 operating hotels across its portfolios. It is looking at having 45 Ginger hotels operating in the next three years. It will use its available land bank at 20 sites to plan expansion of its Ginger Hotel brand.