Indian Hotels Company Ltd (IHCL) plans to open 36 hotels with an additional room inventory of 5,431 in the next four years, Cyrus Mistry, Chairman, said at the company’s 112 th annual shareholders’ meeting on Friday.

The expansions planned will include new hotels in two new countries.

A majority of the properties are to come up under the Gateway brand.

Mistry said market conditions are expected to be challenging in the coming year, with the industry expecting a gradual recovery.

Revpar (revenue per room) was down to 12 per cent, year-on-year.

“Demand remained subdued. The company has seen a challenging year due to the global economic slowdown, coupled with intensified competition,” Mistry added.

Average occupancies remained flat at 63 per cent and average room rates were at Rs 9,564.

Mistry said the rupee depreciation has further impacted revenues.

CRITICAL

Several of the shareholders, however, were critical of the company’s expansion plans, given the slowdown and the continued muted performance by Indian Hotels across its businesses in India and overseas.

One of them also raised the issue of the “high” salary package offered to the company’s Managing Director, Raymond Bickson, who gets $1,00,000 per month (Rs 60 lakh).

Responding to this charge, Mistry chastised the shareholder and told him he was getting personal.

At the shareholders meeting, Bickson was re-appointed managing director for five years.

Asked about the Orient-Express Hotels buyout attempt, Mistry was ambiguous, saying that, at one point of time, the board had considered the project, and that the company will be exploring it further.

nivedita.ganguly@thehindu.co.in