Home page

India hotels to return to profitability in 2 years: CEO

MUMBAI

The CEO of the Indian Hotels Company (IHC), Rakesh Sarna said that the hotel group could return to profitability over the next two years with restructuring and turnaround plan being implemented at the  moment. Though India’s largest hospitality chain, IHC recorded its biggest ever loss of ₹554 crore in fiscal 2014. Sarna did caution that the two year timeframe was also dependant on several external circumstances including domestic and global economic climate.

The hotel’s performance has been worrying share holders. At IHCL’s 113th annual general meeting (AGM) in August last year, Tata Group Chairman Cyrus Mistry too assured them that the hotel company would return to profitability over the next two years.

On Sarna’s to do list is reducing liabilities on the balance sheet, recharging operations and brand architecture. He outlined that the prime priority “at this point is to pare debt”. As of March 31, 2015 IHCL had nearly Rs 4,000 crore of debt on its books.

LEAVE A REPLY

Please enter your comment!
Please enter your name here