Indian Hotels Co has set aside of ₹440 crore for capital expenditure over the next three years.

In the last fiscal, the Tata Group company had spent ₹145.36 crore, largely on projects such as Vivanta by Taj in Dwarka and Guwahati, and the ongoing renovations of the existing hotels.

Despite posting a loss of ₹590 crore in FY-14, the hospitality company is planning to have 33 new hotels which would be a combination of greenfield projects and management contracts.

“The international hotels have been under stress and we would be looking at each of them. Our properties in the US are bleeding and we will see what needs to be done,” Cyrus Mistry, Chairman of Indian Hotels, told the 113{+t}{+h} annual general meeting of the company on Wednesday.

Recently, the company sold its Blue Sydney property in Australia, which is expected to add to its profitability.

Mistry, who’s also the Chairman of the Tata Group, said the company will review other properties also for divestment and that it would be back in profit by next year. “Large supply of hotels limited our top line growth.”

With an average room rate of ₹9,400 and occupancy rate of 65 per cent, excess supply of hotels and a weak economy have been the primary reasons for the widening losses. Bidding for properties like the Orient Express in the overseas markets has also contributed to the company’s diminishing bottom line.

The Taj luxury brand contributes almost 50 per cent to its revenue, followed by the upper upscale brand of Vivanta at 30 per cent, Gateway at 18 per cent and Ginger Hotels at 5 per cent. “At the moment, we are not looking at any new brand, but if there is a gap in the portfolio, we may look at it,” said Mistry.

The company may also look at new segments such as time share in future. “Time share is an interesting concept and we may explore it,” said the Chairman.

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