EIH Limited Witnessed 13 % Jump in Revenue for FY'19 Q1

ADDRESSING THE sixty-eighth Annual General Meeting of EIH Limited (the flagship Company of The Oberoi Group) held in Kolkata, P.R.S. Oberoi, Executive Chairman, The Oberoi Group said, “Globally, the Travel and Tourism industry has completed an uncertain year. In spite of several challenges, the industry has shown remarkable resilience. The industry generated US $8.3 trillion or 10.4 percent of the world’s GDP, which is a growth of 8.6 percent over the previous year. In the year 2017, India’s Travel and Tourism’s total contribution was only US $27.3 billion.”

 Oberoi continued that “Geopolitical instability has become more mainstream in Europe as evidenced in recent unpredictable electoral outcomes in Europe. Brexit and the recent trade wars amongst the world’s leading economies shall definitely impact investment confidence. Negative outlook for the Travel and Tourism industry could be a natural follow on.”

 Oberoi added that “Domestic tourist visits grew by 15.5 percent to reach 1.6 billion in 2016. With disposable incomes rising and the desire of Indian nationals to travel, domestic tourism will play an increasingly important role in the industry. The GST for hotels charging ₹ 7,500 or more is 28 percent. Most international travellers are accustomed to much lower GST in other countries. GST at the rate of 28 percent will seriously affect Travel and Tourism to India. The hospitality industry has made several representations to the government in this regard. We hope there will be a reduction in GST for hotels in the very near future given the important role they play in generating employment.”

 Oberoi further added that “During the Financial Year 2017-18, The Oberoi, New Delhi re-opened on 1st January, 2018 after major renovations. Renovations were completed three months ahead of its scheduled opening date. Despite the fact that The Oberoi, New Delhi was closed for 9 months of the Financial Year and the negative impact of GST, the Financial Year 2017-18 has been encouraging.”

 Oberoi said that “The total revenue and EBITDA have improved in the first quarter of the current Financial Year at ₹ 3434.60 million and ₹ 568.10 million as compared to ₹ 3032.60 million and ₹ 466.90 million last year, an increase of approximately 13% and 22% respectively. The marginal decrease in the current quarter Profit before tax and Profit after tax was mainly due to increase in provision for depreciation on capitalisation of The Oberoi, New Delhi and Corporate office and also an increase in interest on borrowings.”

 Oberoi was optimistic that the revenue and profitability in the succeeding three quarters will be better than the same period last year.

 Oberoi stated that “The Oberoi Group continues to excel and be a pre-eminent global hospitality company. In December 2017, The Oberoi Group was recognised as the World’s Best Hotel Group by readers of the Telegraph, United Kingdom in the largest consumer survey conducted in the United Kingdom. The Oberoi Group was also voted as the World’s Leading Luxury Hotel Brand for the sixth consecutive year by the World Travel Awards 2017. Recently, The Oberoi Amarvilas, Agra and The Oberoi Rajvilas, Jaipur have been ranked as the best and second best resort in India respectively by Travel + Leisure, USA World’s Best Awards 2018. The Oberoi, Mumbai has been ranked as the second Best City Hotel in Asia by Travel + Leisure, USA”.

 On the people front, Oberoi stated “The Oberoi Group has been recognised as one of the Best Employers in the ‘Aon Best Employers India - 2018 survey. In another independent study conducted by the Great Place to Work Institute, India, in partnership with The Economic Times, The Oberoi Group was featured in the Top 25 companies to work for in India, 2017. The Oberoi Group has also found a place among the Best Employers in Asia 2017 by the Great Place to Work Institute.

In conclusion, Oberoi said that The Oberoi Marrakech is in the final phase of completion and is expected to open in the first quarter of 2019.