TajGVK completes merger of Punjab Hotels with self

TajGVK Hotels and Resorts Limited has successfully completed the merger of Punjab Hotels Limited with itself.

The company is also planning a major refurbishment exercise of its Hyderabad-based 'Taj Residency' hotel. The renovation project will include face-lifting the existing lobby, banquet halls and also adding more guest rooms in the current financial year.

An official of TajGVK Hotels and Resorts Limited told Business Standard that the preliminary work related to the expansion was under progress. "Plans are also being finalised for the face lift of the entire lobby and add new food and beverage options at the hotel," the source said.

"It is too early to give out any estimates regarding the project as the designers and the project layouts have not yet been finalised," he said. The company plans a phase wise renovation as they plan to keep the hotel running during the expansion programme. The company also proposes to renovate around 100 guestrooms across its three hotels in Hyderabad "� Taj Krishna, Taj Residency and Taj Banjara "� during the current fiscal.

"The company is in the process of completing the hotel project at Chandigarh and is expected to commence operations during the current financial year. The total amount invested in the project was around Rs 70 crore," the official said. "The amount was raised through debt and internal accruals," he added.

For the financial year ended March 31, 2004, the company recorded a 24 per cent increase in turnover at Rs 88.1 crore from Rs 70.91 crore achieved the previous year.

The gross operating profit (PBIT) was higher by 40 per cent at Rs 26.29 crore from the previous year's Rs 18.72 crore and the net profit higher by 38 per cent at Rs 12.71 crore when compared to Rs 9.24 crore of the previous year.

"Till now, during the current fiscal the tourism industry has been doing well and we expect the turnover of the company to grow by around 25 per cent during the current financial year," the official said.

According to the annual report of the company, foreign tourists visiting the state grew by around 128 per cent to about five lakh as compared to two lakh in the preceding year.

The overall occupancies went up by around 12 per cent and the average room rates (ARR) increased by more than 20 per cent when compared to the previous year.

The room revenue of the hotels increased by 36 per cent to Rs 48.16 crore from Rs 33.37 crore, driven mainly by increased ARR and occupancy. The report said that the revenues of the hotels also grew because of the city becoming the favourite destination for conventions and exhibitions.

During the fiscal, the company earned foreign exchange of Rs 29.26 crore. The outgo on account of imports and other was Rs 3.19 crore, resulting in a net foreign exchange earning of Rs 26.07 crore.

The company's board has decided to declare a total dividend of 30 per cent of which 15 per cent will be the final dividend for the financial year 2003-04. This is in addition to the interim dividend of 15 per cent already declared and paid by the company during the year.