Royal Orchid Hotels Targets Doubling Footprint to 200 Properties by FY27

Bengaluru-based Royal Orchid Hotels Ltd is aiming to expand its network to 200 properties by FY27, capitalizing on the rising demand for domestic travel and increasing its presence in tier-two and tier-three cities across India. The company is also targeting a profit after tax (PAT) of ₹100 crore by 2026.

Arjun Baljee, President of Royal Orchid Hotels Ltd, expressed confidence in the growth of domestic travel, citing India’s strong GDP growth of 7-8%, global challenges creating opportunities for India, and government initiatives encouraging Indians to explore their own country. "These factors are expected to significantly boost domestic travel and tourism," Baljee told businessline.

Currently, the hotel chain operates in over 107 locations and has plans to open 35 new properties this year. Of these, five will be in tier-1 cities, while the remaining 30 will be in tier-2 and tier-3 cities. This strategy aims to strengthen the company's regional footprint by leveraging the increasing trend of domestic travel.

Despite a 19% decline in consolidated PAT to ₹8.72 crore for the first quarter, down from ₹10.73 crore in the same period last year, the company remains optimistic. The dip was attributed to the impacts of ongoing heatwaves, elections, and higher costs related to repairs, maintenance, and asset refurbishment, as explained by Chander K Baljee, Chairman and Managing Director, during a post-results conference call. However, total income for the quarter rose by 5.34% to ₹77.66 crore, compared to ₹73.72 crore in the corresponding quarter of the previous year.

HBL