Sterling Holiday Resorts Achieves Record Q1 Revenue of ₹126 crore and Expands to 50 Resorts

On August 2, 2024, Sterling Holiday Resorts Limited, a wholly owned subsidiary of Thomas Cook (India) Limited (TCIL), announced its results for Q1 FY25.

Sterling Holiday Resorts reported its highest-ever Q1 revenue at ₹126 crore, with an EBITDA margin of 34%, aligning with industry benchmarks. The company achieved revenue growth of 9.2% year over year, and the guest ratio increased from 66% to 69% year over year.

Sterling also crossed the milestone of 50 resorts, having opened 8 new resorts since Q1 FY24. Additionally, Food & Beverage (F&B) revenues rose by 6% year-on-year. The company remains debt-free with healthy cash reserves exceeding ₹200 crore.

Revenue increased by 9.2% over the same quarter last year despite challenges in both the leisure and MICE segments, such as the heat wave across the country, travel delays due to elections, and fewer wedding dates in Q1 FY25.

The EBITDA margin remains healthy at 34%, though slightly lower than the previous year. This decrease is mainly due to the ramp-up phase of five new resorts opened in the last 5 months in Rajasthan, including 3 in Udaipur.

The CEO & MD, Mr Vikram Lalvani, said, “Despite numerous headwinds in the first quarter, Sterling delivered its highest ever Q1 revenues and a healthy EBITDA margin while also ramping up capacity with new resorts. With long-term demand trends continuing to be strong, Sterling is poised for sustained growth through asset-right, balanced portfolio growth across regions. Based on our expansion plans of 20 additional resorts and 1,000 keys in the next 12 to 18 months, in phases, we are also investing in building key talent to cater to this growth.”

19 of Sterling’s resorts are ranked No. 1 in their respective locations on Trip Advisor, with 65% of its resorts in the Top 5. Additionally, 42 out of 50 resorts have a rating of 4.5 or higher out of 5 on Trip Advisor. Sterling Puri was recently awarded Best Resort for Destination Weddings (East) at the ET MICE & Wedding Tourism Awards 2024 in Mumbai, highlighting the growing strength of the Sterling brand in the hospitality sector.

On August 02, 2024, Thomas Cook (India) Ltd’s share price opened at ₹221.70, touching the day’s high at ₹239.10, as of 11:30 AM on the NSE.

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