| A study of 12-odd hotels, reported by DNA shows that they notched up a whopping 85% increase in profit after tax (PAT) year-on-year in the first half of 2006-07, on the back of an increase in average room rates (ARRs) and occupancy rates arising out of significant demand-supply mismatch.
The hotel companies under review were Indian Hotels, East India Hotels, Asian Hotels, Hotel Leela Venture, Royal Orchid, Taj GVK, Oriental Hotels, Viceroy Hotels, Sayaji Hotels, Kamat Hotels, Jaypee Hotels and EIH Associated.
Their PAT rose to Rs 317.20 crore from Rs 171.42 crore in the first half of 2005-06, even as net revenues increased 26% to Rs 1, 805.04 crore (Rs 1,430.73 crore).
Operating profits improved by 52% on an absolute basis to Rs 669.20 crore (Rs 440.45 crore) The hotels also saw a growth of 7% y-o-y in room demand.
Their PAT rose to Rs 317.20 crore from Rs 171.42 crore in the first half of 2005-06, even as net revenues increased 26% to Rs 1, 805.04 crore (Rs 1,430.73 crore).
Operating profits improved by 52% on an absolute basis to Rs 669.20 crore (Rs 440.45 crore) The hotels also saw a growth of 7% y-o-y in room demand.
Current five star rates are in the Rs 14,000-20,000 bracket, with hotels in Bangalore commanding the higher end of the price bracket. The mid-market rates average Rs 6,500 across the country. Details at: http://www.dnaindia.com
The booming business and tourism trades are also driving up food and beverage revenues for hotels this year, much in line with the trend for the past two years. One of the main drivers for F&B, apart from the guests consuming food and beverages, is the meetings and incentives segment, popularly called MICE. About 20% of all hotel guests are part of either MICE or tours.
On an average, hotels earn about 28%-30% of their gross revenues from F&B, as per HVS International, down from its peak of 31% in 2002-03.
For the half year ended September '06, for example, the Taj hotels earned Rs 191 crore in F&B, up 16% from the same period in 2005-06. This was 34% of their April-September '06 sales of Rs 563 crore, against 38% in April- September '05. Further details are at:
http://economictimes.indiatimes.com |
