Hospitality giant EIH Ltd., anticipates robust demand and occupancy levels in the third and fourth quarter of the ongoing financial year, following a moderation during the April-June period, largely due to the general elections and severe heatwaves, according to its Chief Executive Officer and Managing Director Vikram Oberoi.
Oberoi highlighted that the impact of this year's general elections on demand was more significant compared to previous elections. "Our analysis shows that the impact of this election has been greater than in previous elections," he told analysts.
In addition to the election impact, Oberoi pointed out that extreme temperatures in cities like Agra and various locations in Rajasthan, where EIH Ltd., operates leisure hotels, also contributed to the decline in demand during the first quarter.
Despite these challenges, Oberoi remains optimistic about the future. "We are confident that foreign travel is rebounding, and with strong domestic demand for luxury hotels and travel, we should be able to increase rates, assuming demand remains strong," he said.
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Looking ahead, Oberoi expects strong demand and occupancy levels, particularly in the third and fourth quarters of the fiscal year, reflecting positively on both room rates and occupancy.
Reflecting on the first quarter's performance, Oberoi noted that while April saw strong demand, May and June were impacted by the elections and high temperatures.
Regarding EIH's expansion plans, Oberoi confirmed that the company, which operates hotels and resorts under the Oberoi and Trident brands, will continue to focus primarily on India, though it is exploring opportunities abroad. Currently, EIH Ltd., has seven projects in the pipeline, including three company-owned properties, three managed by subsidiaries or associates, and one under a management contract.
(With inputs from PTI.)
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