Oriental Hotels Limited (OHL) is an India-based holding company engaged in the business of owning, operating, and managing hotels and resorts. Established in 1970, OHL is an associate company of The Indian Hotels Company Limited (IHCL) and its hotels are marketed as part of the prestigious Taj Group of Hotels. Taj Coromandel in Chennai was OHL's inaugural hospitality project.
The company operates a distinguished portfolio of premium hospitality assets across South India. These properties cater to diverse customer segments, including business travelers, leisure tourists, event organizers, wedding guests, and long-staying guests. The hospitality business of OHL benefits from the technical and operational support of IHCL.
Oriental Hotels operates seven premium properties strategically located across key South Indian cities. As of FY22, the company's portfolio includes three owned properties, with the remainder being leased and licensed properties. This mixed ownership model provides operational flexibility while maintaining consistent brand standards across all establishments.
The company's flagship property, Taj Coromandel in Chennai, serves as a cornerstone of its operations. The portfolio spans multiple segments, from luxury five-star establishments under the Taj brand to upscale business hotels under the Vivanta and Gateway brands.
Key Properties include:
- Taj Coromandel (Chennai) - Five-star
- Taj Fisherman's Cove Resort & Spa (Chennai) - Five-star
- Taj Malabar Resort & Spa (Kochi near Willingdon Island) - Five-star
- Vivanta Coimbatore (Coimbatore) - Five-star
- The Gateway Hotel Pasumalai (Madurai)
- Gateway Coonoor - IHCL SeleQtions (Coonoor)
- The Gateway Hotel Old Port Road (Mangalore)
Oriental Hotels currently has a market capitalization of ₹2,669 crore (as of latest available data), demonstrating a 2.62% increase over the past year. The Promoter Holding stands at 67.6%, indicating a strong management commitment and stable ownership structure, supported by its association with IHCL.
Oriental Hotels Limited announced strong revenue growth for the quarter ended December 31, 2024, despite a slight decline in net profit on a year-on-year (YoY) basis.
- Revenue Performance:
- Revenue for Q3 FY25 stood at ₹121.9 crore, an 18.3% increase YoY compared to ₹102.1 crore in Q3 FY24.
- Sequentially, revenue grew by 18% from ₹103.3 crore in Q2 FY25.
- Total income came in at ₹122.6 crore, marking a 15% YoY growth from ₹106.6 crore in Q3 FY24.
- Operating revenue of ₹121 crore showed a growth of 20% over the previous year.
- An 11% increase in average room rate resulted in an operating EBITDA of ₹34 crore, a growth of 22%.
- Profitability Metrics:
- Net profit for the quarter was ₹14.4 crore, a 14.9% decline YoY compared to ₹16.9 crore in Q3 FY24.
- However, on a sequential basis, net profit surged by 71.4%, up from ₹8.4 crore in Q2 FY25.
For the nine-month period ending December 31, 2024:
- Profit after tax stood at ₹26.83 crore as against ₹39.01 crore registered in the year-ago period.
- Revenue during the October-December 2024 quarter grew to ₹311.27 crore, from ₹298.28 crore registered in the year-ago period.
- Current PE Ratio: 72.27
- Current PB Ratio: 4.16
- Book Value Trading: The stock is trading at 3.90 times its book value.
- Return on Equity (ROE): The company has a low return on equity of 8.25% over the last 3 years, indicating potential for improvement in capital efficiency.
- 52-Week High Share Price: ₹202.00
- 52-Week Low Share Price: ₹123.50
- Exchange Symbols: ORIENTHOT on NSE, 500314 on BSE.
The Company's subsidiary, OHL International (HK) Limited, is located in Hong Kong, providing potential expansion opportunities and operational flexibility in the Asia-Pacific region.
The management team, led by Puneet Chhatwal as Chairman, benefits from extensive hospitality expertise and operational support from the parent company, IHCL.
Oriental Hotels holds a unique and strong position in the Indian hospitality sector through its association with the prestigious Taj Group brand. The company's strategic focus on premium hospitality segments in South India, combined with its presence in key commercial and tourist destinations, provides sustainable competitive advantages.
The established brand equity of Taj and Gateway properties, along with proven operational capabilities, positions the company well for future growth in India's expanding hospitality market. The mixed asset ownership model (combining owned and leased properties) provides operational flexibility, allowing Oriental Hotels to expand its presence without significant upfront capital commitments while leveraging the strength of established hospitality brands.
