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Hotel Leela to raise room rates by 10-12%

Hotel Leela to raise room rates by 10-12%
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First Published: Thu, Apr 08 2010. 04 31 PM IST
Updated: Thu, Apr 08 2010. 04 31 PM IST
Mumbai: Hotel Leelaventure Ltd plans to increase room rates by 10-12% in this fiscal and expects revenue in the previous year ended 31 March to reach Rs4.5 billion, a senior official said on Thursday.
It expects to post a 20-22% growth in revenue in FY11 riding on an increased room rates as well as better volumes, president Rajiv Kaul told reporters on the sidelines of an industry conference.
The firm has already increased room rates by 8 to 10% in Jan-March, he said.
“A 10-12% increase in rates is imminent this year. The decline in rates was far more drastic and to bring them up would be a gradual process,” Kaul added.
India’s hotel and tourism industry is recovering from a near two-year economic slowdown made worse by the terror attacks in Mumbai in November 2008, which hit tourism traffic.
The hotel chain which operates six hotels, plans to add one hotel each in Delhi and Chennai over the next one year, he said.
“We would be opening Leela Palace in Delhi well before the Commonwealth Games in October,” he said.
Kaul also said the promoters, who hold just under 55% in the firm now, have an option to increase stake by 5% this fiscal from the open market.
Shares of Hotel Leela closed down 2.55% at Rs49.70 in a weak Mumbai market.
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First Published: Thu, Apr 08 2010. 04 31 PM IST