With substantial increase in occupancies and the Average Room Rates during the first quarter, compared to the same period last year, Mr. P.R.S. Oberoi, Chairman of EIH Limited declared the First Quarter results to the Shareholders and announced 12 new projects in India and abroad.
Total Income for the Quarter was Rs. 203.35 crores which is a 31% increase compared to Rs. 155.67 crores during the corresponding period in the previous year.
The Operating Profit increased by over 67% to Rs. 71.70 crores as compared to Rs. 42.81 crores during the corresponding period in the previous year.
The Profit After Tax is Rs. 24.68 crores which represents an increase of 45% as compared to Rs. 17.06 crores during the corresponding period in the previous year.
Mr. Oberoi mentioned that the results of the First Quarter are not indicative of a full year’s working due to the seasonal nature of the hotel industry. Mr. Oberoi expects that, barring unforeseen circumstances, the results for the current year will be much better than in the previous year.
The Shareholders have approved a Bonus Issue in the ratio of 1:2. The proposal for splitting the shares in the ratio of 1:5 has also been approved by the Shareholders.
An Agreement for a 250 key Oberoi Brand luxury hotel and 40 service apartments located at the Business Bay, Dubai has been signed with a real estate company in Dubai. This luxury hotel is part of a multi-use development and will be near the new Burj Dubai. The hotel is expected to be in operation by early 2009. The cost of the hotel and the service apartments will be approximately US $ 100 million.
The construction of the 437 key Trident Hilton hotel in the Bandra Kurla Complex, Mumbai is progressing. The hotel is expected to open in 2008.
The construction of a 150 key Oberoi Brand luxury hotel located next to the Trident Hilton Gurgaon will commence shortly.
A 130 key Oberoi Brand luxury hotel and 40 service apartments has been finalised near Manesar, Gurgaon District. The hotel will be owned by the Uppal Group.
The Company will build Oberoi Brand luxury hotels in Goa and in Bangalore. The Goa hotel is located on a 50 acre beachfront site which the Company has owned for some time. The 225 key Bangalore hotel will be built on a 8 acre prime site overlooking Hebbel Lake. The Bangalore hotel will be the nearest luxury hotel to the new Bangalore International Airport.
Rajgarh Palace, 25 kilometers from Khajuraho, is being converted into a luxury hotel on a 60 acre site with a private lake.
Luxury hotels in the Maldives and at Siem Reap (Angkor Vat, Cambodia) are under planning. Construction is expected to commence in 2007.
A luxury Nile Cruiser is under construction in Egypt. This vessel will commence operation in mid 2007.
A world class luxury train is proposed to be built by a Joint Venture company. The partners in this Joint Venture company will be EIH Limited, the Government of Rajasthan and the Indian Railways. The Rajasthan Government has approved the project. The train will ply from Delhi - Jaipur - Jodhpur - Jaisalmer - Udaipur - Ranthambhore - Agra - Delhi. It will be a seven day trip.
Mr. Oberoi said, “I take pride at the positive attention that India is receiving in the international media. A few years ago all that one read or heard were poverty and disaster stories. Today, the image is positive. This speaks volumes for what is possible in a short space of time if the country adopts the right policies. However, we need to do much more. The Government has, in the recent past, taken steps that are to be applauded. The most visible of these is the aviation policy. Increased international connectivity, privatisation of the New Delhi and Mumbai airports and the two new private airports in Hyderabad and Bangalore are welcome steps in a rapidly growing economy.”
Mr. Oberoi further stated, “The hospitality industry is witnessing unprecedented growth. The increase in revenues and profitability of the Company bear witness to exciting times ahead. Our properties continue to win awards and accolades from around the world. There is a deep sense of satisfaction for me and for all those who work for The Oberoi Group that we serve travellers who appreciate the quality of comfort and service we provide; this encourages us to raise the bar to even higher levels.”
In conclusion, Mr. Oberoi stated that Travel + Leisure, which is a leading international travel magazine, has announced that two Oberoi Hotels have been ranked amongst the first ten best hotels in the world in a Readers’ Poll conducted by the publication. The Oberoi Udaivil‰s, Udaipur and The Oberoi Rajvil‰s, Jaipur have been ranked as the third best and the sixth best in the world, respectively. This is, indeed, good news and all The Oberoi Group employees are proud of this achievement.