EIH posts loss in 2010-11 on costs

EIH Ltd, part of the Oberoi group of hotels, on Monday posted a net loss of Rs 12.75 crore for the financial year 2010-11 against a net profit of Rs 71 crore in 2009-10. HT reports.

EIH Ltd, part of the Oberoi group of hotels, on Monday posted a net loss of Rs 12.75 crore for the financial year 2010-11 against a net profit of Rs 71 crore in 2009-10.

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The company said its operating cost increased in 2010-11, reflecting in the loss. Its net sales however jumped by 33% from Rs 845 crore in 2009-10 to Rs 1,126 crore in financial year 2010-11.

PRS Oberoi, chairman, EIH said, "It was expected that the global economy would recover in the financial year but that has not happened."

Oberoi however added that despite concerns about inflation and volatility in oil prices, domestic growth has been robust and this would reflect in demand for hotel rooms.

EIH added about 200 rooms and expects demand to improve in the National Capital Region this year (2011-12).

"We expect the overall outlook for the current year to be stable with a continuing revival of demand for hotel rooms that the last few months has seen," Oberoi said.