EIH, the Parent Company of Oberoi Hotels, Records Impressive Multi-Fold Q2 Profit of Rs 94 Crore

Hospitality chain EIH Limited, the flagship company of the Oberoi Group, has reported a significant increase in its profit for the second quarter of FY24. The company's profit in the September quarter reached Rs 94 crore, marking a remarkable year-on-year growth of over 300 percent from Rs 22.35 crore in Q2 FY23.

EIH Limited also achieved substantial growth in its financial performance for the quarter. The company recorded consolidated revenue of Rs 552.5 crore and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of Rs 164.9 crore in Q2. This strong financial performance is attributed to increased revenue and profitability.

Arjun Oberoi, the Executive Chairman of EIH Ltd., expressed his satisfaction with the exceptional financial results in the second quarter of FY24. He emphasized the company's commitment to providing outstanding hospitality services and expanding its presence in key markets.

The Indian hotel industry is expected to witness double-digit revenue growth in FY24, according to brokerage firm ICRA. This growth is driven by sustained domestic leisure travel, demand from meetings, incentives, conferences, and exhibitions (MICE), and business travel, as well as an increase in foreign tourist arrivals (FTAs). Additionally, events such as the G20 summit and the ongoing ICC World Cup 2023 have contributed to the industry's performance.

ICRA predicts that premium hotel occupancy across India will be around 70-72 percent in FY24, following a recovery to 68-70 percent in FY23. Furthermore, the average room rates (ARRs) for premium hotels in India are expected to be in the range of Rs 6,000-6,200 in FY24, as per ICRA's analysis.

Demand for hotels is anticipated to remain robust in FY24, supported by healthy consumer sentiments and stable corporate performance. However, hotel-specific demand may vary based on factors such as location, competition, and property-related dynamics. Domestic tourism is expected to be a primary driver, although foreign tourist arrivals (FTAs) are also likely to increase in the second half of FY24. Gateway cities like Mumbai and Delhi are expected to see high occupancy rates of over 75 percent in FY24, benefiting from transient passengers, business travelers, and MICE events, as noted by Vinutaa S, Vice President and Sector Head – Corporate Ratings at ICRA Limited.