Mahindra Holidays & Resorts aims for growth with expansion plan for its resort network

With leisure travel back in fashion, Mahindra Holidays & Resorts India Ltd (MHRIL) sees a promising path in the coming months. He has developed aggressive growth plans that include an expansion of the resort network and an increase in membership.

The Mahindra group company had recently reported a strong performance for the quarter ended September 30, 2021, with its resort revenues surpassing pre-pandemic levels (quarter ended September 30, 2019). In addition, stand-alone net profit rose 20% to Rs 40.6 crore, which was the highest profit on record in the second quarter.

“Indian operations performed best in terms of profit during the quarter. In addition, the occupancy rate of our resorts has reached 73%, which is equivalent to pre-pandemic levels. Our cash position also improved to Rs 1,041 crore.

“We also saw a rebound in member additions which topped the numbers reported in the September 2019 quarter. Therefore, we are definitely better than pre-pandemic levels when we see metrics like additions. membership, occupancy of the complex, income of the complex, total income and profits, ”said Kavinder Singh, Managing Director and CEO of MHRIL.

Talk to The telegraph Before the current fear of Omicron hit the world, Singh said MHRIL is now looking to increase the chamber inventory to more than 5,500 by 2024-25. As of September 30, 2021, the company had 78 resorts in India and overseas, while its subsidiary Holiday Club Resorts Oy, Finland, a vacation ownership company in Europe, had 33 timeshare destinations and nine spa resorts. in Finland, Sweden and Spain.

Its total room inventory at the 78 resorts stood at 4,233 and they reported operational occupancy of 73 percent in the second quarter of this fiscal year.

Singh revealed that the company will not only increase current capacity, but also take the green lane.

For example, it is setting up a new complex in Ganpatipule in Maharashtra and expanding to places like Kandaghat in Himachal Pradesh, Ashtamudi in Kerala outside of Puducherry and Goa.

While the company added 3,943 members during the July-September quarter compared to 2,681 during the last year period, it currently has a cumulative membership base of 258,000.

He added that given its expansion plans, other strengths such as providing an unparalleled guest experience, the huge potential for vacation ownership in India and increased discretionary spending, the company could see its membership base quadruple in the next few years.

Currently, Wyndham Destinations is the largest vacation rental company in the world with over 900,000 members.

Seeming optimistic about the company’s performance in the second half of this fiscal year, Singh pointed out that one of the main trends currently seeing is that people want to drive and that travelers have also started to spend more on food. and drinks.

“People want to create a family vacation, create a bubble with friends or extended family. They also want to do outdoor activities. All of these piles are in our favor as 80 percent of our resorts are located in passable destinations. Therefore, barring a third wave, our performance in the third quarter (which is a strong seasonal quarter for the industry) will be better and we see a further improvement in occupancy compared to the second quarter. As for the fourth quarter, we are in a wait and see mode. However, we are well prepared for any increase in leisure travel, ”he added.

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