Occupancies are improving; FY22 resort income expected to be same as FY20: Mahindra Holidays

Kavinder Singh, MD & CEO of Mahindra Holidays & Resorts on Friday said that member additions for Q4 are looking strong. He also said that the company is targeting over 15,000 member additions in FY22.

“Member additions are on a recovery mode. We should definitely look at better additions than what we did in Q3. In the first quarter also when things were very dark and gloomy, we added about 1,270 members and then we increased it to 2,691 going up to 3,300 in the last quarter. I hope we are able to do better than that in Q4. In FY22 our aim would be to at least get back to FY20 levels which were about 15,700 or so. It could be higher than that, but that is what we are aiming for,” he said in an interview with CNBC-TV18.

Singh said that occupancies are back on track.

"Q3 occupancy was at 75 percent and in December it was at 85 percent and in January it was at 87 percent," he said.

He also said that improving occupancy levels will lead to higher resort incomes and expects to see a similar resort income in FY22 as FY20.

“The way resorts are recovering and occupancy levels are improving, it should lead to higher resort income. So, I definitely feel Q4 will be better than Q3 going by the trends that I see. As we move forward into the next year, we should be seeing very similar levels of revenue from the same resorts, in fact, higher in some resorts. We have also added one resort in Alappuzha, one resort in Jaipur, and the Goa resort in Assonora has also opened up in mid-February. So, I do see resort revenues growing in a significant way over this year and specifically in Q4,” he said.

On international destinations, he said that Dubai is seeing a pick-up. He also said that the European business did extremely well in Q2, but the business has been hit by the second wave of COVID in Europe.