In Short:
Royal Orchid Hotels Ltd, based in Bengaluru, aims to expand to 200 hotels by FY27, focusing on tier-two and tier-three cities to meet rising domestic travel demand. The company expects a profit of ₹100 crore by 2026, driven by India’s GDP growth and government support. Despite a 19% drop in quarterly profits, total income rose by 5.34%.
Royal Orchid Hotels Aims for Big Expansion by FY27
Royal Orchid Hotels Ltd, based in the vibrant city of Bengaluru, has set its sights on an ambitious growth plan, targeting a whopping 200 properties by the end of FY27. This exciting expansion comes as the company looks to tap into the rising demand for domestic travel while strengthening its presence in the burgeoning tier-two and tier-three cities across India.
Optimism in Domestic Travel Growth
The President of Royal Orchid Hotels Ltd, Arjun Baljee, shared his insights on the promising future of domestic travel in a recent conversation with businessline. He noted, “We are expecting an upswing in domestic travel.” This optimism is fueled by several key factors: India’s impressive GDP growth, projected at 7-8 percent, challenges on the global stage that present opportunities for India, and an increasing number of Indians eager to explore their beautiful country, all of which are further supported by government initiatives.
Exciting Plans for Expansion
- Also read: Royal Orchid plans new upscale hotel brand, signs lease for 300-room hotel near Mumbai airport
Currently, Royal Orchid Hotels boasts a presence in over 107 locations, with a remarkable 35 new launches slated for this year. Among these new openings, five will be in tier-1 cities, while a significant 30 will serve tier-2 and tier-3 cities. Baljee elaborated, “This approach is designed to capitalise on the growing trend of domestic travel and strengthen our regional footprint.”
First Quarter Performance Insights
On a brighter note, the total income for the quarter ending June 30 showed growth, increasing by 5.34 percent to reach ₹77.66 crore, compared to ₹73.72 crore in the corresponding quarter of the previous year.
