Two years after it announced plans to start a separate asset-light property management business, Mahindra Holidays is yet to kickstart the project due to the pandemic.

In August 2019, Arun Nanda, who is chairman of Mahindra Holidays and Resorts had said that the company was planning to acquire management contracts for new hotels. He had said that this would happen through a separate entity within Club Mahindra and was aimed at shoring up revenues.

Speaking to BusinessLine in January 2020, Kavinder Singh, MD & CEO of Mahindra Holidays and Resorts India Ltd had explained the company was in the midst of finalising the brand image of the company.

However, speaking at a recent analyst's call following the fourth-quarter results, Singh said that the property management business has yet not been flagged off because of various reasons like Covid etc.

The entity is likely to focus on creating a brand in the leisure destinations where Club Mahindra will take external inventory to take advantage of its hospitality credentials.

“It will be an asset-light model of getting inventory for us and most importantly we will be able to target the customers who would come into that resort, which would be operated by a separate entity.” However, there is no timeline for the said plan.

He added that the company is currently focused “on growing from 4,197 room units to 5,500+ room units in 4 years odd through the methods that we have today which is building your own, expand existing resorts, acquire as well as take resorts on lease but refurbish them, have a product improvement plan and bring them to our standards and manage them.

Mahindra Holidays had reported a Rs 10.1 crore loss in Q4 of FY21 compared to a loss of Rs 165 crore  in Q4 of FY20. Its revenue from operations for the quarter that ended on March 31, 2021 was Rs 465 crore decline of 25 per cent over the corresponding previous period.

 

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