Indian Hotels makes profit on higher room tariffs, F&B sales

Priya Sheth Updated - October 28, 2011 at 08:46 PM.

The Tata Group's Indian Hotels Company has seen an improved performance for the second quarter ended September 30 due to an increase in revenues generated from rooms, coupled with increased food and beverages sales as well.

“The rooms sold across all the company hotels increased by 8 per cent in volume over the corresponding quarter of the preceding year, together with a 2 per cent growth in ARRs (Average Room Rates) in what is essentially an offseason period for the sector,” the company said.

The total expenditure increased to Rs 346.78 crore in the quarter from Rs 317.06 crore in the second quarter last year.

The company has a consolidated debt of Rs 3,400 crore and has no plans to raise fresh debt, said Mr Anil Goel, Chief Financial Officer of the company at a press meet. The company's standalone debt is Rs 2,300 crore.

This September, the company launched a new Vivanta by Taj in Bengaluru. This is a 327-room hotel at Yeshwantpur. Also, last month, the company increased its room rates by 7 to 13 per cent.

At the end of the day, the Indian Hotels stock closed at Rs 69.80, up 0.65 per cent from its previous close on the Bombay Stock Exchange (BSE).

Published on October 28, 2011 08:32