The Board of Directors of EIH (a member of The Oberoi Group) have announced the audited results for the financial year 2014-2015. The company’s total revenue, including other income, during the fourth quarter was Rs. 399.43 crores as against Rs. 366.36 crores during the same period in the previous year. For the financial year, Total Revenue was Rs. 1,366.30 crores compared to Rs. 1,278.94 crores during the previous year in spite of challenging economic environment.
EBIDTA during the fourth Quarter was Rs.112.73 crores as against Rs. 85.53 crores during the same period in the previous year. EBIDTA during the Financial Year was Rs. 305.94 crores compared to Rs. 279.27 crores during the previous year.
Vikram Oberoi, Managing Director and Chief Executive Officer, EIH stated, “The global economy grew at a modest rate of 3.4 per cent in 2014. This rate of growth represents a marginal increase from 3 per cent in 2013. The growth was fuelled primarily by the decline in oil prices of about 45 per cent. USA continued to improve with a growth rate in 2014 of 2.4 per cent compared to 2.2 per cent in 2013. Importantly, the Euro zone reversed its negative growth in 2013 (-0.5 per cent) to record a modest growth of 0.9 per cent in 2015.”
Oberoi further added that, in the past few years, the Indian hotel industry has been facing the double challenge of weak demand and increased supply of rooms in almost all locations across the country. In spite of these challenges, EIH was able to increase market share in most locations and hence the strong profit growth led by the hotel division. The performance of the Indian hotel industry in 2014 – 2015, remained subdued with a marginal increase in occupancies. Average Room Rates (ARRs) remained flat, he opined.
Looking to the future, Oberoi pointed out that the measures by the Government to drive through several strong policy initiatives to simplify the process of doing business with and in India, the efforts to revitalise the manufacturing sector and the emphasis on the travel and tourism industry will stimulate demand. “Hence, we expect to grow our ARR in all markets and in addition, occupancy leading to higher revenue per available room (REVPAR) in 2015 – 2016,” he said.
The Oberoi Group continues to focus on aggressive hotel development with three hotels opening planned during the first six months of 2016. Oberoi concluded by saying that the long term prospect for travel and tourism is positive and EIH will continue to outperform in most major markets.
