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“Q2 will be somewhat better than Q1 in both occupancy and certainly in average room rate (ARR),” Keswani noted. He acknowledged that Aurika, being in an off-season period during Q1 and Q2, will need more time to reach its full potential. However, he emphasised, “In H2, as I have said earlier, it will pick up to where we hope it will stabilise.”
Keswani highlighted, Aurika Mumbai is a large hotel with 670 rooms, and achieving high occupancy levels will take time. Reflecting on a previous 300-room hotel in Mumbai, which took seven months to reach 75% occupancy and now maintains around 90%, the expectation for Aurika is to reach 70% occupancy in the second half of this year.
By next winter, he anticipates that the hotel could reach 80-85% occupancy, with a goal to surpass 70% this winter.
is heavily investing in renovations, focusing on the high-value Lemon Tree Premier properties and the entire Keys portfolio, which haven’t been updated since before the COVID-19 pandemic.
Keswani stated the majority of these renovations are taking place in the first half of this year and next year. This strategic overhaul is expected to significantly improve the company’s performance, with the second half of this year projected to be much stronger than the first. By the end of next year, the company aims to position itself as a revitalized hotel brand.
He noted that the company is allocating approximately ₹100 crores annually for these renovations, anticipating a payback within two years. This investment is expected to generate an additional ₹50 crores in EBITDA annually, beyond the normal expectations, following the renovations.
The company, which has a market capitalisation of ₹9,772 crore, has seen its shares rise 17% over the last year.
Also Read | Lemon Tree expects average room rent and occupancy to improve this year
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