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EIH Q2 Review - Leisure Rebounds Sharply; Ventures Into Cafe Segment: ICICI Direct

EIH Q2 Review - Leisure Rebounds Sharply; Ventures Into Cafe Segment: ICICI Direct

The Oberoi hotel stands at a near empty Marine Drive during a lockdown imposed due to the coronavirus in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)
The Oberoi hotel stands at a near empty Marine Drive during a lockdown imposed due to the coronavirus in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

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.

Click on the attachment to read the full report:

ICICI Direct EIH Q2FY22 Result Update.pdf

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