Royal Orchid Hotels expands reach with new property in Surat, Gujarat

Today, shares of Royal Orchid Hotels Limited surged by over 4.88%, with the company’s current market capitalization standing at Rs 949.87 crore.

Recent Development:

Royal Orchid Hotels Limited has embarked on an ambitious expansion strategy by signing a management agreement for a new 5-star hotel in Surat, Gujarat. Collaborating with Hindva Hospitality, LLP, ROHL will oversee the property under a new upscale brand, scheduled to be unveiled soon.

Expected to open in May 2024, the hotel will feature 288 elegantly appointed upscale rooms, three restaurants, six conference rooms, an exhibition hall, and a comprehensive wellness and spa facility.

With a focus on showcasing the rich heritage and cultural legacy of the region, the hotel aims to attract tourists and visitors from across the country.

Management Comment:

Chander K Baljee, Chairman & Managing Director of Royal Orchid Hotels Limited, expressed, “The signing of the new property is in line with Royal Orchid brand’s overarching growth plans of being present in all major business transits and hubs. With increasing year-round occupancy, Gujarat has great potential to remain the preeminent business centre of the nation. With the intention of fully capitalising on the immense potential of this state, our strategy is to operate hotels in diverse locations throughout the state.”

About the Company:

Regenta & Royal Orchid Hotels stands out as one of India’s rapidly expanding hotel chains, catering primarily to discerning business and leisure travelers with its array of 5-star, 4-star, and resort properties.

With over 100 hotels operational across India, it has firmly established its presence in the hospitality sector. Promoted by Chander K Baljee, Royal Orchid Hotels has emerged as a prominent and highly recognized name in the Indian hospitality industry.

Business Developments:

The product-wise breakdown reveals that Room Rent constitutes the largest share at 52.28%, followed by Food & Beverage at 35.36%. Additionally, Hospitality accounts for 9.06% of the total, demonstrating the company’s diversification across various categories.

Furthermore, the stock has witnessed significant buying activity, yielding returns of more than 36% in the last one year.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.