Kavinder Singh, MD and CEO of Mahindra Holidays & Resorts India Limited on Wednesday said Indian hotels in terms of room rate and occupancy have not only reached but surpassed pre-Covid levels.
In an interview with Moneycontrol, Singh said that in March, the average rate of the room at the industry level crossed Rs 8,000, which it hit for the first time. He further added, "If you look at occupancy, they started touching 68-70 per cent, which was never the case pre-pandemic. So, in these metrics, hotels have crossed pre-pandemic levels. The supply has been constrained because people (hotel chains) did not continue projects and this is why you are seeing average daily rates going up. Also, there is a demand surge and there is a supply constraint—that is leading to these numbers."
Commenting on the company's performance in the quarter gone by, the MD said that it was one of the best periods for Mahindra, in terms of occupancy, revenue, and membership upgrades.
Increasing room capacity
Mahindra Holidays is aggressively expanding its inventory by acquiring properties and creating more resorts, says the report. The company is aiming to add nearly 1,500-1,600 rooms in the next three-four years, with an investment of Rs 1,700-1,800 crore, the CEO said.
Singh also said that they are working closely with state governments to see if they can get land or resorts that can run on long leases.
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Kavinder Singh terms India a bright spot owing to its increasing number of affluent households. With a current membership of 280,000 families, the organisation's target market is nearly 30 million.
He further stressed that Indians are now focusing on discovering the country and while international travel is a priority for them, it is no more the only thing.