Country Club Hospitality and Holidays Ltd., (CCHHL) is now almost a debt free company, said its Chairman and Managing Director Y. Rajeev Reddy.
“It is a remarkable comeback for a ₹600-crore debt ridden Hyderabad company that too in the hospitality sector where most of the hotels are under stress post COVID,” he said in an interview.
As on date, CCHHL has cleared 98% of total debt. The remaining ₹15 crore will be cleared soon. Besides, it has a term loan in lieu of fixed deposit.
According to him, the hospitality major planned to become a debt free by December 2023, but it was prolonged by two-three months due to a delay in closure of certain deals.
“We cleared major debts by selling non-core assets in India and abroad over the last two-three years. From now on, we are not going to sell any more assets,” he said.
As part of the expansion plan, Mr. Reddy said that they have forayed into the real estate segment to construct two million sq.ft., of commercial and residential space in Bengaluru and Hyderabad.
The first project, a residential complex in Doddaballapur near Bengaluru called Osadia Garden City will be launched in six months.
“It is like going back to the roots after two decades. It is a 145-flat residential complex spread over half-a-million sq. ft., costing ₹44 crore. About 70-80% of the project work is over,” said CFO Ram Kumar.
CCHHL, which has collectively two million members, is planning to increase the numbers over the next 4-5 years through organic and inorganic routes.
The company reported Q3 standalone loss narrowed down to ₹3 crore from ₹6 crore. Revenue from operations contracted to ₹13 crore from ₹16 crore.
“The losses have come down substantially due to rise in occupancy rates in our properties in Bandipur, Kodaikanal and Hyderabad. We will become cash positive soon,” Mr. Reddy said.
