Mahindra Holidays & Resorts, a part of the iconic Club Mahindra brand of membership-only resorts, is reportedly planning to add more than 300 rooms by March next year, bringing the total inventory to 4,500 keys.
Notably, Mahindra’s hospitality chain recorded a quarterly profit of Rs 40.6 crore (about USD 54 million), despite the COVID-19 pandemic that severely impacted the hotel and tourism industry. The chain is known to be situated across 78 locations with 4,197 keys, with plans to improve although provided there is no third wave and the resulting mobility restrictions.
Kavinder Singh, Mahindra Holidays MD, and Chief Executive mentioned that the group began this financial year with 4,197 rooms and are on track to finish the year with 4,500 rooms. They are expanding their current facilities in Ganapatiphule, Maharashtra, and Assonora, Goa, by about 300 rooms.
However, Singh declined to reveal additional investment details but said they are part of a USD 163 million capital investment plan to build over 1,000 rooms over the next three years, ending in FY24.
It is worth mentioning that from a subscription monetization standpoint, the company is debt-free and has guaranteed cash flows.
A major portion of the Rs 265.2 crore (about USD 3.5 billion) revenue in Q2 came from vacation ownership, which accounted for Rs 96.7 crore (nearly USD 1.2 billion), followed by an annual membership fee of Rs 76.2 crore (approx. USD 1 billion). It also includes resort income of Rs 50.8 crore (around USD 67 million), interest income of Rs 14 crore (USD 18 million), and treasury income of Rs 27.6 crore (USD 36 million), said the CEO.
Club Mahindra's Finnish subsidiary Holiday Club, a leading vacation ownership firm in Europe, manages 33 timeshare locations and nine spa resorts across Finland, Sweden, and Spain, out of a total of 78 properties.
Total income of the firm, on a consolidated basis, stood at Rs 593.3 crore (around USD 7 billion), up 16.1%, and net income at Rs 59.8 crore (approx. USD 79.8 million), up 107.7%, including the Finnish operations, sources confirmed.