Making Room

href="https://www.valueresearchonline.com/stocks/41868/eih-ltd/#snapshot" class="gen">EIH will spend Rs 850 crore to enhance its presence in Mumbai, which contributes over 40 per cent to its top line East India Hotels (EIH) was incorporated in 1949 and it manages the Oberoi group's 30 hotels and five luxury cruisers across six countries. Interestingly, EIH's portfolio also includes airport and flight services, a printing press and car rentals. The F&B (food and beverage) income from the airport and flight services accounts for nearly 40 per cent of its total F&B revenue. The printing press and car rentals, which the company plans to expand, has turnovers of Rs 36-40 crore and Rs 50 crore, respectively. Spanning India EIH specialises in luxury destinations with 5-star deluxe category hotels and resorts across Udaipur, Ranthambore, and Cochin (luxury cruiser). By November 2009, the Rajgarh Palace would be an addition to the portfolio with 60-rooms. EIH has major plans to enhance its presence in Mumbai, which contributes more than 40 per cent to its top line. Mumbai currently attracts around 25 per cent of tourist inflows into India. The company has undertaken a Rs 800-crore capex to construct a 437-room 5-star hotel (Trident Hotel) in Bandra-Kurla Complex (BKC). This project is expected to be very positive for the company's long-term outlook, although benefits would not accrue before January 2009. The company plans to extend the room base to 440 by FY10. This would provide EIH the largest room base hotel in the city. The BKC property and Rajgarh Resorts would increase its owned-room base by 27 per cent bringing an impetus to revenues in FY09-10. EIH would increase its managed rooms by 72 per cent by FY10. The compa

This article was originally published on February 05, 2008.