Addressing the Sixty-fifth Annual General Meeting of EIH Limited (the flagship Company of The Oberoi Group) held in Kolkata. P.R.S. Oberoi, Executive Chairman, EIH said, “The Indian hotel industry has been facing an increase in supply of rooms in almost all locations across the country. As a result, the performance of the hotel industry in 2014 – 2015 remained subdued. There was a marginal increase in occupancies while Average Room Rates (ARRs) remained flat. Given the excess supply of rooms, the outlook for the Indian hotel industry over the next 12 to 18 months will be challenging. However, our effort as in the past will be to outperform competition in the hospitality sector.”
Oberoi went on to state that the first quarter results for the current financial year have been approved by the Board in their meeting held recently. The total revenue has increased to Rs. 309.04 crores from Rs. 292.58 crores in the same quarter last year which is an increase of 6 per cent. The profit before tax is Rs. 23.66 crores as compared to Rs. 10.80 crores in the same quarter last year. This includes a sum of Rs. 10.99 crores of extraordinary income. Profit after tax has increased to Rs. 19.86 crores from Rs. 6.41 crores in the same quarter last year.
Commenting on the rest of the financial year, Oberoi stated that revenue and profitability in the following three quarters is expected to be better with improved market conditions and also on account of the company’s ability to attract a greater share of business.
With reference to the economic and political environment and its impact on the hospitality sector, Oberoi said, “It is indeed heartening that the Government is pursuing policies to attract more direct investment to India; these policies should result in increasing business travel to India which will have a positive effect on the hospitality sector. We hope that the number of foreign visitors to India will increase from seven million in 2014 to over 10 million by the year 2017. We remain optimistic for the long term as the Government is committed to drive several strong policy initiatives to simplify the process of doing business in India and revitalising the agricultural and manufacturing sectors and promote travel and tourism as a means of creating employment.”
In conclusion, Oberoi said that The Oberoi Al Zorah located in the United Arab Emirates is currently under construction. The Ocean front site is part of a prestigious real estate venture incorporating a luxury residential and retail development and an 18 hole golf course. This hotel is expected to open in the second quarter of 2016.
The Oberoi, Marrakech is also under construction. In addition to the luxury hotel, Oberoi branded villas which will be sold are planned within the development. The Hotel is scheduled to open in April 2016.
The construction of The Oberoi, Sukhvilas is currently underway. This hotel is located near Chandigarh and adjoins a 400 acres forest. The 20 acres hotel site consists of luxury villas surrounded by extensive landscaped gardens. This hotel will open in April 2016.
An agreement to build a luxury Oberoi hotel on a sea front site in Casablanca has been finalised. Construction of the property will begin shortly.
Design and planning of The Oberoi, Doha has been initiated and is located on a prime site in the business district of the city.
