ITC To Invest Rs 9k Cr to Up Hotel Count – The Economic Times – 28-Nov-2014
December 2, 2014 - Uncategorized
He said ITC will launch five other hotels -in Mahabalipuram, Kolkata, Ahmedabad, Hyderabad and Colombo -by 2018. “Last week, we also did the ground breaking for our Colombo One hotel that will `1,855 crore) and cost $300 million (.will be ready by 2018,“ Anand said.
ITC’s aggressive investment plan -which will be funded internally -comes despite slow profit growth in the business. ITC’s hospitality subsidiary reported a 5.44% increase in its net profits for the year ended March at ` . 139.7 crore. ITC has reported a loss from hotels in the second quarter ended September at about ` . 9.6 crore, after absorbing a charge of ` . 13.4 crore towards additional depreciation. “Indian hospitality has been in a bad shape and it’s not just us. Having said that, I think the worst is over and there are good times ahead,“ Anand told ET. “If (Prime Minister Narendra) Modi is a magnet, then it means there could be more FDIs and with that will be with that will be more business travel, which will have a three times multiplier effect,“ he said. ITC gets close to 50% of its revenues come from non-cigarette businesses.
The hotel indus The hotel industry continues to be impacted by a weak pricing scenario in the backdrop of sluggish economic conditions and the overhang of excessive room inventory in key domestic markets. According to hospitality consultancy HVS, India has over one lakh branded hotel rooms and another 55,000 in the pipeline.