EIH Ltd, is looking to make operational three hotels in the first six months of next year (calendar year 2016).

The three hotels set to be operational are - The Oberoi Al Zorah at the United Arab Emirates (UAE); The Oberoi, Marrakech in Morocco and The Oberoi Sukhvilas at Chandigarh.

According to Vikram Oberoi, Managing Director and Chief Executive Officer, EIH Ltd, “The Oberoi Al Zorah” in UAE is currently under construction. Apart from the hotel, it will also have a luxury residential and retail development and an 18 hole golf course.

“The hotel will be managed by a wholly owned overseas subsidiary of the Company and is expected to open in the second quarter of 2016,” he was quoted as per a release issued by the company.

The 84-keys property at Marrakech is also under construction. In addition to the luxury hotel, “branded villas” are also being planned for sale. The hotel, initially scheduled to be operation in late 2015 (as per the company’s annual report) will now be open in April 2016. It will be managed by a wholly owned overseas subsidiary of the company.

The third property to be made operational next year is the Oberoi Sukhvilas in Chandigarh. Adjoining a 400 acre forest; the hotel will cover a 20 acre hotel plot and consist of luxury villas with private swimming pools surrounded by extensive landscaped gardens. The hotel will be managed by the company.

According to a release issued by the company, is also looking at another property in Morocco, under the name, The Oberoi, Casablanca. The hotel is located on a prime ocean front site close to the central business district and will be managed by a wholly owned overseas subsidiary of the company. It is scheduled to be operational in the last quarter of 2018.

Results

Meanwhile, EIH reported a near 33 per cent jump in net profit (standalone) to Rs 48 crore for the quarter ending March 31, 2015. Net profit for corresponding quarter last year stood at Rs 36 crore.

During the period, its income from operations increased by a little over 9 per cent to Rs 393 crore; up from the Rs 360 crore it reported in the year-ago-period.

“In the past few years, the Indian hotel industry has been facing the double challenge of weak demand and increased supply of rooms. In spite of these challenges, EIH was able to increase market leading to a strong profit growth,” Oberoi said.

For the full year (FY-15), EIH reported a marginal two per cent increase in standalone net profit to Rs 97 crore; against the Rs 95 crore it reported in FY-14. Total income from operations (standalone) during the year increased by approximately 7 per cent to Rs 134 crore (Rs 125 crore).

The board has recommended a dividend of Rs 1.10 per share

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