Back in operations Viceroy Hotels tries to make out for lockdown cancellations; stock up 3.5%

The company was faced with a lot of cancellations of confirmed bookings and thereby impacting the financials of the company.

Jun 10, 2020 09:06 IST India Infoline News Service

Viceroy Hotels Limited informed the exchanges Tuesday that the lockdowns and restrictions imposed on various activities due to Covid-19 pandemic since March 22, 2020, have posed challenges to all the businesses of The Viceroy Hotels Limited (VHL) and its subsidiaries.

The company was faced with a lot of cancellations of confirmed bookings and thereby impacting the financials of the company.

“We believe there will be an impact in sales volumes, revenue, and profitability for Q1 and Q2FY20-21 as our hotel operations are presently shut and will gradually ramp up only after the resolution of the pandemic,” company said.

However, the company is confident about adapting to the changing business environment and respond suitably to fulfil the needs of its customers.

The company is operated under the brand Marriott Hyderabad and Courtyard Marriott Hyderabad. It does not foresee any challenge in recovery, post the revival of the economy and more the Tourism and Hospitality sector. However, revenues are expected to be softer in the initial phase of the lockdown and for some time after the lifting of the lockdown mainly due to lower occupancies and limited F&B off take arising out of reduced business and leisure travel.

The company operations were shut down entirely during the lockdown phase as it was not part of government denominated essential services.

“Our Long Stay guests have continued to stay in the hotels. The corporate office adopted the work from home policy during the entire duration of the lockdown as a precautionary measure.”

With the lifting of the partial lockdown restrictions, the Company has started re—opening of hotels, after establishing thorough and well —rehearsed safety protocols. The Company expects the hotels to become operational in a phased manner after the lockdown is lifted and the confidence of travelersis restored. The central and state governments has allowed operating the hotels from June 8, 2020.

Viceroy Hotels Ltd is currently trading at Rs2, up by Rs0.07 or 3.63% from its previous closing of Rs1.93 on the BSE.

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