Mahindra Holidays Seeks To Make Use Of Slowdown And Buy Resorts
Mahindra Holidays is looking to buy distressed assets as the worst economic slowdown in recent history presents opportunities.
(Bloomberg) -- Mahindra Holidays & Resorts India Ltd., a unit of the nation’s biggest utility-vehicle maker, is looking to buy distressed assets as the worst economic slowdown in recent history presents opportunities.
“There are opportunities coming to us and we are going to prioritize drivable-distance resorts versus resorts which are further away from the city,” said Chief Executive Officer Kavinder Singh in an analyst call on Monday. Mahindra Holidays’ shares surged 18% yesterday, paring this year’s decline to 35%.
Besides acquisitions, the company is building one resort each in the states of Goa and Kerala. It has restarted construction work in Goa, while it’s waiting to restart work in Kerala, Singh said. The company had cash reserves of 7.81 billion rupees ($103 million) at the end of March.
The company, whose operations were affected because of coronavirus, expects domestic travel to recover quickly once travel restrictions are eased, Singh said. Once people learn to live with masks and maintain distance, they would still want to go to drivable destinations, he added.
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