EIH Q2 Review - Leisure Rebounds Sharply; Ventures Into Cafe Segment: ICICI Direct
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ICICI Direct Report
EIH Ltd.'s Q2 FY22 witnessed an improvement in revenue per available room with settling of Covid-19 cases and fast vaccination drive. Average occupancy levels reached over 50% versus average occupancy of 65-66% during the pre-Covid era.
Average room rates also improved to over Rs 8400/room nights (i.e. 89% of pre-Covid levels).
The sharp recovery was mainly led by leisure destinations with Himachal Pradesh and Rajasthan reporting 234% and 141% of revenues, respectively, during pre-Covid levels.
Business destinations like Delhi and Mumbai, which are major revenue contributors, have reached 74% and 53% of revenues, respectively, during pre-Covid levels.
Expect demand trends to remain healthy from leisure segment. However, to reach pre-pandemic levels EIH will take some more time due to reduced corporate travel.
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