With 70% of the Ginger properties in the country cash positive already, Indian Hotels Company Limited (IHCL), hopes to expand profitability and cash flows of its economy brand at subsidiary level during the current financial year (2013-14). The company has drawn a well rounded strategy which includes a next phase of development plan for Ginger and also steps to streamline business at operational levels.
For the fiscal ended March 31, 2011-12, Roots Corporation (RCL), subsidiary of IHCL that runs Ginger hotels, reported a net profit of R9.79 crore against a net loss of R8.79 crore for the fiscal ended March 31, 2010-11. Total income of RCL for the fiscal ended March 31, 2011-12 stood at R89.42 crore against R79.79 crore for the fiscal ended March 31, 2010-11, up 12%.
?Leveraging costs at corporate level has been a challenge and so has been reaching a critical mass. We are trying to reach a critical mass to cover the cost of the company,? said PK Mohankumar, the managing director and chief executive officer, RCL.
RCL plans to ramp up its portfolio to 50 hotels by 2014 from 27 hotels. It is looking at options of lease, buy options ? both land and built-up spaces, management and franchisee model for its properties.
He adds that Ginger is re-looked from all aspects like styling, pricing and design with the motive to make it an ?aspirational? brand.