Hospitality demand in domestic sector rises; accords 6% rise by Indian Hotel

Spread the love

A 20-month high of Rs 157.25 was accorded with a 6 percent hit on the BSE in intra-trade by Indian Hotel shares, this Wednesday.
In the past four trading days, the market price of Indian Hotels has surged 11 percent after the company said that a special committee of the board approved raising to Rs 250 crore on a private placement basis through non-convertible debentures (NCDs). The trading volumes on the counter nearly doubled along with a combined 10.6 million equity shares changing hands on the NSE and BSE.


In the past three months, Indian Hotels jumped by 41 percent in the market compared to a 7 percent rise in the S&P BSE Sensex.
In the January–March quarter (Q4FY21), Indian Hotels Company, South Asia’s largest hospitality company, had reported a positive Ebitda (earnings before interest, taxes, depreciation, and amortization) of Rs 83 crore, an increase of 118 percent from December quarter (Q3FY21).


The company’s present focus is on being cost prudent will aid in Ebitda’s margin expansion, despite subdued net sales in near future. The company is hopeful of demand recovery in the US and the UK in the next three to four months with the covid situation now gradually coming under control.


The traveling, hospitality demand is expected to arise in the domestic sector during the special protocols and travel restrictions imposed on people. As restrictions on movement were relaxed, the industry saw pent-up demand emerging from a sudden urge to travel to leisure destinations, mostly resorts, wellness centers, eco-tourism destinations, and homestays within drivable distances, as per the financial year 2020-21 (FY21) annual report of Indian Hotels.


Two things are certain. First, that guests’ preferences of accommodation and dining would steer towards reputed brands that embed hygiene and safety in their products and services. Second, the hospitality sector with its resilience will survive and adapt to the changing demands of hospitality in the years to come, according to the company statement.