Royal Orchid Hotels Expects About 80% Occupancy In Second Half Of The Year
Various factors, including low business travels, heatwave and competition from international destinations like Thailand impacted occupancies in the first quarter.
After enduring a low first quarter, Royal Orchid Hotels Ltd. expects occupancy level to bounce back and reach around 80% in the third and fourth quarters, according to company President Arjun Baljee.
Various factors, including low business travels, heatwave and competition from international destinations like Thailand impacted occupancies in the first quarter. In the first quarter, the company, which operates 107 properties, had an overall occupancy level of 70%.
"We are very optimistic. We have seen in Q2 a nice little bounce back, and Q3 and Q4 the business on books actually looks really good," Baljee told PTI.
Asked about the occupancy levels, he said,"This quarter will be in the mid to high 70s. Then we're looking at the early 80s, and let's say the mid-80s is where I think, Q3 and Q4 should end up."
Reflecting on the first quarter performance, he said historically from an India perspective for "business-centric" hotels, "Q1 is always the worst" due to a variety of reasons, including heatwave, and elections this year.
Further, with Thailand offering visa-free entry coupled with availability of direct flights such as to Phuket from Bengaluru had also played a part, he added.
Baljee explained that first quarter always has the lowest amount of business travel and historically, there is a recovery after first quarter.
The company had clocked a total income of Rs 77.66 crore in the first quarter and profit after tax of Rs 8.72 crore.
