EIH Q1 Profit Down 8.75%, Bengaluru Mixed-Use Development

New Delhi, Aug 7 (PTI) Hospitality major EIH Ltd posted has reported an 8.75 per cent decline in consolidated net profit at Rs 96.75 crore in the fourth quarter ended June 30, 2024.

The company, which had posted a consolidated net profit of Rs 106.03 crore in the same quarter last fiscal, said its board has approved a mixed-use development on land measuring 8.6 acre overlooking Hebbal Lake in Bengaluru entailing the investment of Rs 1,350 crore.

Revenue from operations in the first quarter was at Rs 526.54 crore as against Rs 498.10 crore in the year-ago period, EIH Ltd said in a regulator filing on Tuesday evening.

Total expenses in the quarter under review were higher at Rs 429.68 crore as compared to Rs 380.74 crore in the same period a year ago, said the company, which owns and operates hotels and resorts under the Oberoi and Trident brands.

The company's board at its meeting held on Tuesday approved the mixed-use development comprising a 120-key 'The Oberoi Hotel' and a 250-key 'Trident Hotel'.

Other components include an independent commercial development with a food and beverage hub and curated boutique retail, EIH said in a separate regulatory filing.

The estimated investment required is Rs 1,350 crore and will be financed through internal accrual and debt, the company added.

In another filing, EIH said its property 'The Oberoi Grand, Kolkata' will close rooms, suites and the two restaurants from August 15, 2024, as part of a renovation exercise.

The first phase of renovation will be completed in 18 months and the hotel will reopen with 50 rooms and suites, all the restaurants, banqueting, back-of-house facilities and the MEP (mechanical, electrical and plumbing ) infrastructure fully upgraded. During this phase of the renovation, all back-of-house areas of the hotel will also be renovated, it added.

The banquet facilities of the hotel will continue to operate and will close on March 15, 2025, for renovation.

The second phase of renovation will take an additional 12 months, after which, the hotel will have 200 completely renovated rooms and suites, it said.