ICRA assigns A1+ rating to CP programme of Oriental Hotels

Credit rating agency, ICRA has assigned A1+ rating to Rs 30 crore commercial paper (CP) programme of Oriental Hotels.

The rating draws comfort from the company’s strong brand name (hotels operated under management contract from Indian Hotel Company) and its dominant market share in the Chennai luxury hotel market. The ratings also draw comfort from the company’s healthy liquidity, flexibility with lenders and limited repayment obligations of around Rs 36.5 crore over the next one year.

Oriental Hotels has a portfolio of eight hotels with a room inventory of 836 rooms, located across four states in South India. The flagship hotels for the company are Taj Coromondal, Chennai and Vivanta by Taj - Fisherman’s cove, Chennai.