The Indian hotel industry benefited from a steady rise in domestic and international travel, as pandemic restrictions were lifted, while more people began opting for the so-called ‘workations’ and ‘staycations’.
Indian Hotels Company Ltd reported a better-than-expected third-quarter profit on Tuesday, boosted by increased visits from holiday and business travellers. The Tata Group-backed company reported a five-fold increase in consolidated net profit at 3.83 billion rupees ($46.78 million) for the three months ended Dec. 31, compared with 760.1 million rupees a year earlier.
Analysts on average had expected a profit of 2.55 billion rupees, according to IBES Refinitiv data.
The Indian hotel industry benefited from a steady rise in domestic and international travel, as pandemic restrictions were lifted, while more people began opting for the so-called ‘workations’ and ‘staycations’.
Strong demand in the quarter drove occupancy to over 70% in both leisure and business hotels in key domestic markets, up 27% from pre-COVID levels, the operator of Taj hotels said in a statement.
This drove revenue from operations up 51.7% to 16.86 billion rupees in the quarter.
“The demand outlook for the sector in 2023 remains robust on the back of sporting events such as world cup hockey and cricket, … and recovery of inbound and corporate travel,” Chief Executive Officer Puneet Chhatwal said.