NEWS | Sterling Holiday Resorts standalone revenue increase by 13%; aims for 10 new resorts by 2022
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Sterling Holiday Resorts continues its positive trend, records positive PBT for Q4 FY 20-21 amidst the pandemic.
Sterling Holiday Resorts Ltd. has recorded a positive PBT (Profit Before Tax) for Q4 FY 20-21 amidst the pandemic with a standalone revenue of INR 97 crore in Q4 FY 20-21 compared to INR 61 crore in Q4 FY 19-20 with a 58 percent increase compared to Q4 FY 19-20.
Resort occupancy dropped marginally from 57 percent to 54 percent but room nights grew 6 percent and combined with an 8 percent increase in Average Room Rate (ARR), resulted in resort revenues increasing by 13 percent. Sterling Palm Bliss, Rishikesh, was added to the resort bouquet during the quarter. Membership volumes grew by 20 percent with the introduction of the 10-year Vantage membership in Q3 FY 20-21.
Sterling is looking at an aggressive expansion plan and aims to double its inventory from the current 2,400+ rooms to 5,000 rooms by 2025. In line with this, over the last one year, Sterling has opened resorts in Guruvayur, Thekkady and Rishikesh. Currently, the company has several locations on an active search like Mysore, Udaipur, Jodhpur, Varanasi and Coorg and also exploring options near Mumbai and along the coasts of Orissa. In the course of 2021 and 2022, Sterling aims to add around 10 resorts with 500+ keys.
“Our radically different approach to the business that was implemented after the pandemic struck has helped the company report a positive PBT growth in Q4 2021. We implemented new strategies on our membership business aimed at increasing productivity while keeping a control on the Fixed costs through a number of cost-saving initiatives,” Ramesh Ramanathan, CMD, Sterling Holiday Resorts commented.
The leisure holiday and vacation ownership brand has introduced Sterling Vantage – a membership that is targeted at the Millennials who are a large target segment for holidays. It is a 10-year membership and is lighter on the pocket with attractive payment options and has helped build membership acquisition in these times.
The company have also introduced a number of sub-brands within the resorts and these provide unique services for the guests while increasing the revenue-generating opportunities within the resort.
“Sterling ‘Subuthi’ Spas across most of our resorts, Sterling LOCAL – our locally themed resto-bars have been well received by our guests. Special offers for Drive-to holidays, Staycation offers, an Anytime Holiday card that enables guests to buy now and holiday anytime in the coming year as per their convenience – have helped us gain traction with our guests.
We have introduced Sterling CARES – our comprehensive hygiene and sanitation program in association with Apollo Clinics. This has strengthened the confidence of our guests and we have been receiving strong reviews from them. We are also actively working on a vaccination for our employees to ensure a safe environment for our guests,” Ramanathan added.
The hospitality company has seen a drastic change in booking trends in the last couple of months. In the latter part of 2020 and even up until January 2021, the tourism industry was just beginning to pick up with guests opting to take quick breaks at drive-to destinations within 5 to 10 hours driving distance from their place of residence.
Travel restrictions were partially lifted in many states except for Kerala and Maharashtra, and Sterling witnessed a critical mass traveling from nearby cities especially to destinations like Mussoorie, Manali, Nainital, Corbett, Mt. Abu, Jaipur Kodaikanal, Yelagiri and Ooty.
“The second wave of the pandemic has created a deep impact on the industry, with most resorts being shut down due to the lockdowns and restrictions. But we are beginning to receive some inquiries as people anticipate the end of the lockdowns. While inquiries are still very low for June and July, we are receiving bookings and wedding inquiries from August onwards,” Ramanathan informed.
As the vaccination drive intensifies and once a majority of the population gets vaccinated, Ramanathan is hopeful of the states lifting travel restrictions, and the confidence of the people going up. “We are hopeful for an encouraging revival of the industry in the second half of the Financial Year 2021-22,” he commented
