A guest room is seen inside the Roseate New Delhi hotel, operated by the Bird Group, in New Delhi, India. (Photographer: Anindito Mukherjee/Bloomberg)

Royal Orchid Hotels Expects Occupancy Rate To Rise More Than 80% In FY19

Bengaluru-based Royal Orchid Hotels Ltd. is expecting an occupancy of more than 80 percent for the current financial year even as the industry average exceeded 70 percent during the January-March period.

Demand in the hotel industry has seen a drastic improvement, CFO Amit Jaiswal told BloombergQuint in an interview. “Levels like these have been seen for the first time in a decade.”

Jaiswal is confident of prices increasing by at least 8-10 percent in FY19.

Besides, increasing demand and cost optimisation measures will lead to a significant improvement in the company's bottom-line, according to Jaiswal. “We are also confident of growing 15 percent on the top line front,” he added.

Also read: Hotel Stocks Rally Ahead Of Holiday Season As Demand Outpaces Supply

Other Key Takeaways

Here are some of the other key takeaways from the interaction:

  • The company has plans to open six new properties in the short-term
  • It intends to open 40-50 hotels in the next 3-4 years
  • Confident of reducing its consolidated debt of Rs 76 crore

Watch the full interview here.