Mahindra Holidays & Resorts expects 85% occupancy this fiscal: MD & CEO

Mahindra Holidays & Resorts India Ltd expects occupancy levels for the ongoing fiscal to be around 85 per cent on the back of steady demand from its members with a rising trend of shorter holidays, according to its Managing Director and CEO Manoj Bhat.

The company, which witnessed 90 per cent resort occupancy on an expanded inventory base in the first quarter of this fiscal, expects it to be softer in the second quarter.

"Q1 is a peak quarter. Q2 will dip, Q3 will climb again. So it's a bit seasonal, but overall for the year, we expect around 85 per cent kind of occupancy," Bhat told PTI when asked about how the occupancy level is expected in the fiscal.

 

He said factors like the extreme heatwave this summer coupled with the general elections that impacted the wider hospitality industry were not much of an issue for Mahindra Holidays & Resorts India.

"For us, that is not so much a factor because for us there is steady member demand across the season," Bhat said, adding the fluctuation in occupancies for the company ranges from 78-90 per cent.

Macro economic factors like growth in the economy and increasing propensity of people to spend, better air and road connectivity are making people take family holidays more, thereby increasing occupancy, he added.

"We are also seeing that vacations are becoming shorter. Instead of taking a seven-day break, people are taking three-day or four-day breaks," Bhat said.

The company's ability to offer a variety of resorts across the country in multiple themes -- beach side, hill resorts, different experiences in the form of heritage and forts in different kinds of settings -- has also helped in attracting members consistently, he added.

When asked about the company's resort expansion plans, he said,"Our overall plan is to add 5,000 rooms from now to FY30. We are well on track."

Earlier this year, MHRIL announced that it plans to invest up to Rs 4,500 crore in the next three to four years to double its room capacity to 10,000.

A leading leisure hospitality firm, MHRIL offers a 25-year membership along with other products. As of June 30, 2024, it has 114 resorts across India and abroad.