Mahindra Holidays & Resorts’ 100-room Virajpeth property in Coorg, Karnataka is likely to go live in January, the company told analysts in an earnings call recently. The property will eventually have 200 rooms.
Mahindra Holidays, the market leader in timeshare holidays’ business, has also announced two other greenfield properties at Shimla and Goa.
Virajpeth and these two properties will add 400 rooms to the company’s inventory of 2,276 rooms as at the end of September 30, 2012. During July-September quarter, the company added 313 rooms to end up at 2,276 rooms.
Mahindra Holidays’ management has told analysts that the company would add between 700 and 750 rooms in the current financial year.
“We believe this will be a key challenge, because Mahindra Holidays, on a net basis, has added only 227 rooms in the first half of the year,” says a report of Edelweiss.
The company added 485 rooms in 2011-12.
Membership addition
Mahindra Holidays added 4,162 members in the July-September quarter of 2012. This was higher than 3,780 members added in the previous quarter, but lower than 4,599 members added in the corresponding quarter of last year.
Today, the company’s membership stands at 1,51,200. It has told analysts that it expects to end the year with a membership addition of 21,489, so as to reach 1,64,747.
In the July-September quarter of the current year, Mahindra Holidays achieved a turnover of Rs 164 crore and net profit of Rs 27 crore.
Turnover was higher by 4.5 per cent over the previous quarter, and net profit by 51 per cent. On quarter-on-quarter basis, the turnover was higher by 11 per cent and net profit 12 per cent.