HBI Staff | Hyderabad 
Bengaluru-based Royal Orchid Hotels Ltd has set an ambitious goal to expand its network to 200 properties by FY27, driven by the growing demand for domestic travel in India. The company is focusing on increasing its presence in tier-two and tier-three cities, with plans to achieve a profit after tax (PAT) of INR 100 crore by 2026.
Arjun Baljee, President of Royal Orchid Hotels Ltd, expressed confidence in the rising trend of domestic travel. “We are expecting an upswing in domestic travel,” Baljee told. He attributed this anticipated growth to India’s strong GDP growth of 7-8%, global challenges that present opportunities for India, and a growing interest among Indians to explore their own country, supported by government initiatives. “With these three factors aligning, we can expect a significant boost in domestic travel and tourism,” he added.
Currently, Royal Orchid Hotels operates in over 107 locations, with 35 new launches planned for this year. Of these, five will be in tier-1 cities, while the remaining 30 will be spread across tier-2 and tier-3 cities. “This approach is designed to capitalize on the growing trend of domestic travel and strengthen our regional footprint,” Baljee explained.
Despite a 19% decline in consolidated PAT for the first quarter, dropping to INR 8.72 crore compared to INR 10.73 crore in the same period last year, the company remains optimistic. The decrease was attributed to ongoing heatwaves, elections, and increased costs related to repairs, maintenance, and refurbishments, as noted by Chander K Baljee, Chairman and Managing Director, during a post-results conference call. Meanwhile, total income for the quarter ended June 30 increased by 5.34% to INR77.66 crore, compared to INR 73.72 crore in the corresponding quarter of the previous year.
Source : Business Line
