Bengaluru-based Royal Orchid Hotels Ltd is targeting an expansion of its hotel network to 200 properties by FY27. The company plans to achieve this by capitalising on the growing demand for domestic travel and increasing its presence in tier-two and tier-three cities across India. With this, the company is set on reaching a profit after tax (PAT) of ₹100 crore by 2026.

Arjun Baljee, President of Royal Orchid Hotels Ltd, expressed optimism about the prospects of domestic travel. “We are expecting an upswing in domestic travel,” he told businessline. This anticipated growth is supported by India’s robust GDP growth of 7-8 per cent, global challenges that create opportunities for India, and a rising trend of Indians exploring their own country, bolstered by government initiatives. “With these three factors aligning, we can expect a significant boost in domestic travel and tourism,” he added.

Currently, the hotel chain has a presence in over 107 locations and has 35 launches planned for this year. Of these new openings, five will be in tier-1 cities, while the remaining 30 will be located in tier-2 and tier-3 cities. “This approach is designed to capitalise on the growing trend of domestic travel and strengthen our regional footprint,” Baljee explained.

The company reported a 19 per cent dip in its consolidated PAT for the first quarter, falling to ₹8.72 crore compared to ₹10.73 crore in the same period last year. This decline was attributed to the adverse effects of ongoing heatwaves and elections, as well as increased costs related to repairs and maintenance, including expenses for refurbishing assets and additional hiring, as noted by Chander K Baljee, Chairman and Managing Director, in a post-results conference call.

The total income increased by 5.34 per cent to ₹77.66 crore for the quarter ended June 30, compared to ₹73.72 crore in the corresponding quarter of the previous year.

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