Royal Orchid Hotels Optimistic About Recovery After Low Q1

Royal Orchid Hotels anticipates a rise in occupancy levels to around 80% in the third and fourth quarters following a low first quarter influenced by factors such as heatwave and international competition. Company President Arjun Baljee is optimistic about the subsequent quarters, noting a historical recovery pattern after Q1.

After a challenging first quarter, Royal Orchid Hotels is projecting a significant recovery, with occupancy expected to hit around 80% in the third and fourth quarters, according to company President Arjun Baljee.

Various factors, including reduced business travel, a heatwave, and competition from international destinations like Thailand, affected first-quarter occupancy, which stood at 70% for the company's 107 properties.

"We are very optimistic. We have seen a nice little bounce back in Q2, and business on books looks promising for Q3 and Q4," Baljee stated in an interview with PTI.

When discussing future occupancy levels, he added, "This quarter will be in the mid to high 70s. By Q3 and Q4, we expect early to mid-80s." He noted that Q1 is traditionally the weakest for business-centric hotels in India due to seasonal factors and this year's elections.

Additionally, visa-free entry to Thailand and direct flights from Bengaluru to Phuket contributed to the decline in domestic occupancy. However, a rebound is anticipated post-Q1.

Despite the downturn, the company reported a total income of Rs 77.66 crore and a profit after tax of Rs 8.72 crore in the first quarter.

(With inputs from agencies.)