With plans to add 300 rooms, refurbish existing properties and acquire more timeshare subscribers (where customers get a right to use a property for a period in advance), Sterling Holiday Resorts Ltd hopes to make operating profits by next year.
Addressing its shareholders at the company's annual general body meeting on Wednesday, Mr Siddharth Mehta, Chairman, said the company has earmarked close to Rs 50 crore for refurbishment and has plans to acquire new properties — “at least 300 units within the next couple of years” — on long-term lease to bridge the gap between room-day and timeshare holders.
As of now, the company has 56,000 active members. Without giving out any numbers, Mr Mehta said if the inactive members too turn active, it get another Rs 100 crore annually.
To woo subscribers back and to rope in more, after several years, Sterling Holidays acquired a 53-key property at Thekkadi a few weeks ago on long-term lease. After including this, the company's room-and-cottage stock exceeds 1,300 spread over 14 resorts across 13 locales, including Darjeeling, Gangtok, Goa, Kodaikanal, Lonovala, Manali, Munnar, Mussoorie, Ooty and Yercaud.
The company recently mopped up over Rs 120 crore through new equities and warrants to persons such as Mr Radhakishn Damani, Mr Gopikishan Damani and Mr Rakesh Radheshyam Jhunjhunwala and institutions, including Bay Capital Investment, India Horizon Fund and India Discovery Fund.
“Jhunjhunwala and Damanis together have invested close to Rs 80 crore for a little over 14 per cent stake,” said the company's MD, Mr Ramesh Ramanathan. Mr Mehta alone has invested close to Rs 100 crore in the company .