Mahindra Holidays and Resorts India Expansion Plans

Mahindra Holidays and Resorts India (MHRIL) is a Mahindra Group company. MHRIL is in planning to build properties at Naldehra in Shimla, Assonora in Goa and Ashtamudi in Kerala with total investment of Rs 550 to 600 crore. MHRIL is going to add 700 rooms through combination of newly built properties and through existing properties. The company is also considering new project at Dharamsala in Himachal Pradesh. It is expanding its existing properties at Kandaghat near Shimla. The share price of MHRIL on BSE increased by 1.81 per cent and is currently trading at Rs 253.55.

MHRIL had already added 6 new resorts in Ganpatipule, Kodaikanal, Goa, Manali, Alleppey and Kanha in FY15. The company added additional rooms at Virajpet and Udaipur aggregating to 409 rooms. It will invest around Rs 500 crore over next two years to add 500 rooms across 8 to 9 properties in India. This capex is additional to above three location Greenfield projects.

MHRIL established in 1996 and engaged in the leisure hospitality industry. The company's main business of selling vacation ownership and providing holiday facilities. Its brand 'Club Mahindra Holidays' is grown up with customer base of 1.83 lakh members and 45 beautiful resorts across India and abroad as of FY15. MHRIL is also present in international destinations like Bangkok, Austria’s Innsbruck, Kuala Lumpur and Dubai.

MHRIL is going to raise stake in Holiday Club Resorts Oy in Finland from 23.3 per cent to 88 per cent. This raising equity in Holiday Club Resorts Oy will require about Rs 200 crore. This deal will be completed within next three months. MHRIL can focus on Europe holiday destinations through this deal. The company is also focusing on new geographies to expand business inorganically. After deal MHRIL will become largest vacation ownership company in the world outside USA.

MHRIL's consolidated revenue declined by 0.08 per cent to Rs 829.64 crore in FY15 compared to previous financial year. EBITDA of the company increased by 14.37 per cent to Rs 207 crore during FY15 on yearly basis. Its EBITDA margin expanded by 332 basis points to 25.45 per cent in FY15 on yearly basis. However, PAT of MHRIL decreased by 8.80 per cent from Rs 87 crore in FY 14 to Rs 80 crore in FY15.