EIH Associated Hotels Limited is a prominent player in the Indian hospitality sector, primarily engaged in the ownership, management, and operation of five-star deluxe and five-star hotels in key tourist destinations across India. Established in 1983 as Pleasant Hotels Limited, the company has evolved significantly and is now the flagship company of The Oberoi Group, one of India's largest and most eminent hospitality groups. It is renowned for its diverse portfolio of luxury hotels offering exceptional and personalized services.
The company operates luxury hospitality properties under two distinguished brands: Oberoi Hotels & Resorts and Trident Hotels. Under the Oberoi Hotels & Resorts brand, it owns and operates two luxury hotels, which are synonymous with luxury, grandeur, and personalized service. Additionally, it manages six five-star facilities under the Trident Hotels brand, perfect choices for both leisure and business travellers seeking quality accommodations.
EIH Associated Hotels maintains a strategic portfolio of premium hospitality assets across India's key tourist destinations. The company's esteemed properties under the Oberoi brand include:
- The Oberoi Cecil, Shimla: A luxurious heritage hotel nestled in the Himalayas.
- The Oberoi Rajvilas, Jaipur: Spanning 32 acres of lush gardens, pools, and fountains in the quaint Rajasthani countryside, offering an opulent retreat.
The company's Trident Hotels brand extends across multiple strategic locations throughout India, catering to both business and leisure segments with varying accommodation capacities:
- Trident, Agra: Approximately 135 rooms and two suites.
- Trident, Chennai: Approximately 157 rooms and 10 suites.
- Trident, Cochin: Approximately 77 rooms and eight suites.
- Trident, Bhubaneswar: Approximately 57 deluxe rooms and five suites.
- Additional Trident Hotels in Jaipur and Udaipur.
EIH Associated Hotels demonstrates strong financial fundamentals, characterized by a healthy growth trajectory and an almost debt-free status, which significantly strengthens its financial position.
The company currently has a market capitalization of ₹2,299 crore (as of May 2025), with reported revenue of ₹408 crore and a profit of ₹91.8 crore. Over the last five years, the company has delivered a good profit growth of 18.6% CAGR and maintained a healthy dividend payout of 23.1%.
Recent quarterly performance shows positive momentum:
- Q3 FY2024-25 (Quarter ended December 2024): Net profit rose 5.36% to ₹39.91 crore, compared to ₹37.88 crore in the previous quarter ended December 2023.
- Q2 FY2024-25 (Quarter ended September 2024): The company reported a significant improvement in profitability, with a net profit of ₹2.08 crore, compared to a net loss of ₹0.92 crore in the previous quarter ended September 2023. Sales rose 20.52% to ₹70.84 crore in this quarter, up from ₹58.78 crore in the same period last year.
While the working capital days have increased from 40.7 days to 162 days, the overall financial health remains robust.
- Market Capitalization: ₹2,300.35 Crore (as of 16th May 2025)
- Revenue (Latest Annual): ₹408 Crore
- Profit (Latest Annual): ₹91.8 Crore
- P/E Ratio: 28.39
- Dividend Yield: 0.79%
- Promoter Holding: 75.0% (as of March 2025)
- 52-Week High: ₹543.95
- 52-Week Low: ₹304
EIH Associated Hotels Ltd (EIHAHOTELS) has shown moderate volatility and impressive long-term performance on the BSE:
- Last 1 Month: Share price moved up by 0.90%.
- Last 3 Months: Share price moved up by 12.58%.
- Last 12 Months: Share price moved up by 4.13%.
- Last 3 Years: Share price moved up by 98.59%.
The company's P/E ratio of 28.39 and current dividend yield of 0.79% reflect its valuation and commitment to shareholder returns within the luxury hospitality segment.
The company has demonstrated consistent revenue growth over recent years, outpacing industry averages. Over the last five years, revenue has grown at a yearly rate of 7.77%, compared to an industry average of 5.52%. This outperformance indicates the company's strong ability to capture market share and maintain pricing power in the competitive hospitality sector.
The hospitality industry has shown significant resilience and recovery momentum, particularly in the luxury segment where EIH Associated Hotels operates. The company's strategic focus on premium destinations and high-quality service standards positions it well to benefit from the growing domestic tourism and business travel segments in India.
Promoter holding in EIH Associated Hotels Ltd has consistently been 75.00% as of March 2025 (from August 2024), reflecting strong management confidence and providing stability to the company's operations.
EIH Associated Hotels Limited actively demonstrates its commitment to sustainability. For the financial year 2024-25, the company released its Business Responsibility and Sustainability Report (BRSR) as part of its Integrated Annual Report. This report outlines the company's dedication to sustainable practices and performances, aligning with SEBI's regulations. The company focuses on environmental, social, and economic impacts, having implemented various green initiatives across its hotel properties.
The company maintains a consistent dividend policy, reflecting its commitment to shareholder returns. The Board of Directors, at its meeting held on May 16, 2025, recommended a final dividend of ₹3.5 per equity Share (i.e., 35%), subject to shareholder approval. This dividend recommendation underscores the company's strong cash flow generation and balanced approach to capital allocation, prioritizing both growth investments and shareholder returns.
EIH Associated Hotels Limited stands as a well-positioned player in India's luxury hospitality sector, backed by a strong portfolio of premium properties under renowned brands, consistent financial performance, and a clear commitment to sustainable business practices. The company's strategic focus on luxury tourism destinations and its association with The Oberoi Group provides a significant competitive advantage in the expanding Indian hospitality market.
