Hotels (Commonwealth Union) _ Shares of EIH Associated Hotels reached a new peak of Rs 845, soaring 17 percent during Monday’s intraday trade on the BSE. This surge follows the company’s announcement that its board will meet on Friday, June 14, 2024, to consider and recommend the capitalisation of reserves by issuing bonus shares to its equity shareholders.
The stock price of the Oberoi Group’s hotel company surpassed its previous high of Rs 839.10, achieved on April 9, 2024. Over the past three days, the stock has jumped 25 percent, nearly doubling from Rs 429.35 in the past seven months. As of 10:11 AM, the stock was trading 15 percent higher at Rs 828.40, compared to a 0.10 percent decline in the S&P BSE Sensex.
EIH Associated Hotels primarily owns and operates premium luxury hotels under the prestigious ‘Oberoi’ and five-star ‘Trident’ brands. The company’s strong performance in the financial year 2023-24 (FY24) includes a 25.4 percent year-on-year (Y-o-Y) growth in profit after tax, amounting to Rs 81.03 crore, compared to Rs 64.62 crore in FY23. Revenue from operations also saw a 14 percent Y-o-Y increase, reaching Rs 384.78 crore.
India’s status as the fastest growing economy is fueling national economic progress and increasing individual purchasing power. This economic vigor benefits sectors like travel and hospitality, which enhance connectivity and make travel more accessible and affordable for consumers. Such growth propels the industry, creating numerous opportunities for businesses and travelers alike.
EIH Associates highlighted a shift in tourism preferences in its FY23 annual report, noting a growing demand for clean, hygienic, and family-friendly accommodations beyond traditional tourist destinations. “In recent times, there has been a noticeable change in the preferences of both international and domestic tourists visiting India. While the country has long been known for its religious sites, attracting a large influx of tourists, there is now a growing demand for clean, hygienic, and family-friendly accommodations that go beyond traditional tourist destinations. This shift in preferences reflects the evolving needs and expectations of travelers, paving the way for new opportunities and positive transformations in the tourism industry,” the report stated.
This evolving landscape, coupled with strategic decisions like the issuance of bonus shares, positions EIH Associated Hotels favorably to capitalize on emerging trends and continued growth in the hospitality sector.Top of Form
