Mahindra Holidays & Resorts will add more than 300 rooms by March
Mahindra Holidays & Resorts, which operates under the flagship Club Mahindra brand of member-only resorts, plans to add more than 300 rooms by March to bring the overall inventory to 4,500 keys, a senior official said. business.
The Mahindra group company had reported the highest quarterly profit of Rs 40.6 crore in the three months leading up to September 2021 amid the pandemic that has hit the hospitality and tourism industry hard.
It operates 78 properties offering 4,233 keys to date and recorded around 80% occupancy in the third quarter and hopes to improve it in the future provided there is no third wave and mobility brakes. resulting from it.
âWe started this fiscal year with 4,197 rooms and are on track to close the year with an inventory of 4,500 rooms. We are adding just over 300 rooms to our existing properties in Assonora in Goa and Ganapatiphule in Maharashtra,â Kavinder Singh, Managing Director and CEO of Mahindra Holidays, told PTI.
Refusing to give an exact investment in these (existing) brownfield projects, he said these were part of the planned capital investment of Rs 1,200 crore to add more than 1,000 rooms over the next three years ending FY24 when “we will have an inventory of over 5,500 rooms. Last fiscal year, we added 465 rooms”.
Singh seemed confident to close the year near FY20 levels given the increase in occupancy which sniffs between 78% and 80%, slightly up from second quarter levels which were already at level d. ‘before the pandemic in terms of occupation.
While the second-quarter occupancy rate was at pre-pandemic levels, October and November averaged 78-79% and December is expected to be well above 80%, Singh said.
The third quarter is already close to the FY20 level as resort revenue has been steadily growing and is above pre-pandemic level, he said without saying they would close. better exercise 23 than the figures for exercise 22 given the uncertainty about the third wave.
Asked about acquisition plans as the company has grown through this path, especially outside (Holiday Club Resorts in Finland which has a track record almost as big as Club Mahindra’s), Singh said that Leisure properties were doing well overseas and there was almost no one looking for distress sales ruling out any immediate announcements on this front.
But, Singh was quick to add that they are always on the lookout for good assets.
On how they might weather the pandemic storm, Singh said Club Mahindra has a unique business model in which its occupancy is assured, as it is a members-only timeshare club. He added that 96% of an initial annual reassessment is considered deferred income, as they can only record 4% of the annual contribution in the annual balance sheet.
“This means that with over 2.59 lakh members we were sitting on deferred income of almost Rs 5,000 crore and the deferred net income on the book in the second quarter was 4,400 crore on a stand-alone basis,” did he declare.
The company is debt free and has assured cash flow from a subscription monetization standpoint.
Of the revenue of Rs 265.2 crore in the second quarter, most of it came from vacation ownership at Rs 96.7 crore, followed by an annual subscription fee of Rs 76.2 crore.50, Rs 8 crore in resort income and Rs 14 crore in interest income and cash income at Rs 27.6 crore, he said.
Of the 78 properties that Club Mahindra operates in total, its Finnish subsidiary Holiday Club, which is one of the leading vacation rental companies in Europe, operates 33 timeshare destinations and nine spa resorts in Finland, Sweden and Spain. .
In the second quarter, on a stand-alone basis, Mahindra Holidays reported revenue of Rs 265.2 crore, up 25.3 percent year-on-year, of which it generated 40.6 Rupee crore in net income, up 20.2 percent and a cash balance of Rs 1,041 crore, against Rs 950 crore.
At the consolidated level, which includes Finnish operations, total income amounted to Rs 593.3 crore, up 16.1 percent and net income to Rs 59.8 crore, up 107.7 percent. hundred.
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