The Hindu Business Line : Royal Orchid to pay Rs 5 as maiden dividend

Royal Orchid Hotels Ltd today declared a maiden dividend of Rs 5 per share of Rs 10 for the year ended March 31, 2006. It recorded a total income of Rs 85.98 crore, a growth of 47 per cent over 2004-05.

The company's Q4 profit was Rs 7.99 crore on a total income of Rs 20.94 crore.

Announcing the consolidated results after its IPO last year, Mr Chander Baljee, Chairman and Managing Director said Royal Orchid would add five hotels with 385 rooms in the current financial. The company would be investing Rs 60-70 crore on the projects. The Group currently operates five properties in Bangalore and Mysore with a room strength of 450.

Mr Baljee said Royal Orchid Hotels was keen on extending its brand's footprint across the country.

It had already had firmed up projects in Hyderabad, Pune, Jaipur and a second property in Mysore.

He said it planned to leverage its cash surplus amounting to Rs 140 crore from its internal accruals and money raised from IPO and private equity for its expansion.

Spread across the categories of luxury, business class and budget hotels, its aim was to "establish a national presence and be ranked among the top five players in the Indian hospitality industry in the next three years", Mr Baljee said adding, the company was looking at expansion by way of joint ventures, taking property on lease, revenue-sharing basis, management-control model and building own properties.

With its eye set on major metros, Royal Orchid plans to set up hotels in Chennai, Mumbai and Kolkata, while it has already struck a joint venture alliance with a partner in Delhi to open a five-star property.

Its shares closed at Rs 118.3 today, recording a rise of 18.42 per cent at BSE against yesterday's closing price of Rs 99.90.