01 November 2001
INDIAN HOTELS COMPANY
Indian Hotels Company Limited (IHCL) is a name that has become synonymous with grandeur, luxury and service. Starting with a minuscule capacity of 240 room three decades ago, the company has grown into a powerful monolith and operates 37 hotels in India and 16 abroad. IHCL has a presence in every segment. Its hotels have been grouped into various segments, namely luxury, business, leisure and international.
Apart from having the largest chain of hotels, its competitive edge stems from well-positioned properties in the business districts of Mumbai and Delhi. It also has prime properties in key cities like London, New York, Washington, DC, Chicago, the Middle East and Africa. IHCL's revenues have dwindled on account of a fall in business and tourist arrivals. However, the company is undergoing a restructuring exercise, which is expected to yield good results. The long-term prospects of this company appear satisfactory.
EIH Limited is one of leading companies in the hotel industry. The company's name was changed to EIH from East India Hotels to enhance its offshore image. EIH has become synonymous with class and style. The company has come a long way and is now one of the most recognised names in the industry. EIH owns and operates the Oberoi chain of hotels in India and abroad. EIH's operating margins, like many hotel companies, have been declining in the last two years.
EIH derives a major chunk of its revenues from its Mumbai and Delhi properties. The company's operating income is highly dependent on the business traveller segment, which fluctuates with the economic and investment climate in the country. In order to mitigate this impact, the company has decided to construct medium-priced hotels in smaller cities and towns like Pune. Considering the efforts initiated by the company to excel in the industry, EIH presents bright future prospects.