"The hotel industry is
expected to clock at least 45-50 per cent of pre-Covid revenues in FY22.
Further operating profits in the current fiscal will be aided by improved
operating leverage and sustenance of some of the cost-optimisation measures
undertaken last fiscal," Icra Assistant Vice President and Sector Head
Vinutaa S said.
However, she said, pre-Covid
revenues and profits are likely only by the financial year 2023- 24, as a
result of sustenance of some cost-saving measures, the breakeven is expected to
reduce and hotels are likely to report pre-Covid margins of 85-90 per cent of
revenues going forward.
The situation is still evolving
and remains contingent on the efficacy of vaccines and a potential third
Covid-19 wave, the Icra report added.
Inquiry