EIH Ltd., a member of the Oberoi Group, said on Tuesday that a combination of a smart marketing strategy and cost-control measures had helped the company beat the trend and improve its financials and increase room occupancy. EIH runs the luxury Oberoi group of hotels and the five-star Trident brand.

P. R. S. Oberoi, EIH Executive Chairman, told reporters here at a press conference that the company had increased its revenue per room by 9 per cent in 2012-13. Its occupancy increased to 64 per cent during the first quarter of 2013-14 compared to 55 per cent a year ago. He was optimistic about the trend EIH continuing during the rest of 2013-14.

He, however, struck a cautionary note saying that the spiral of agitation over Telangana, Bodoland and Gorkhaland would further affect tourist inflow and harm the hospitality business.

Company Vice-Chairman and Chief Executive Officer S. S. Mukherjee said that although the “size of the cake” was stagnant, EIH’s marketing and sales strategy on the one hand and its increasingly energy-efficient operations on the other, had helped. “We do not cut costs as that affects either our employees or our guests… we cut waste,” Mr. Oberoi quipped.

Citing instances, Mr. Mukherjee said that EIH hotels were now using energy-efficient equipment and harnessing renewable energy sources like solar and wind wherever possible.

EIH’s top line increased to Rs.271.25 crore in the first quarter of 2013-14 from Rs.246 crore a year ago. Its net profit increased to Rs.10.6 crore from Rs.9.45 crore.

Mr. Oberoi said that investments were on track but EIH has adopted an asset-light policy and would increasingly adopt the management contract system for its future ventures. Construction on the project in Navi Mumbai, owned by the Reliance Group and managed by EIH, will start soon. RIL now holds 19 per cent of EIH equity with the promoters holding 35 per cent and ITC holding around 16 per cent. “We will increase our holding whenever possible,” Mr. Oberoi said.

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