ICRA revises rating of Royal Orchid Hotels’ long term facilities

Credit rating agency, ICRA has revised rating of Royal Orchid Hotels’ long term facilities worth Rs 161.03 crore and Cash Credit limits worth Rs 1 crore to D from BBB+. The company has received the said rating considering the delays in debt servicing owing to the stretched liquidity position and the current weak demand scenario in the hospitality industry.

The company has reported a trivial 1.3% growth in operating income at Rs. 36.0 crore over the corresponding previous and a profit after tax after minority share of Rs. 22.4 crore for the first quarter ending June 2012.

Royal Orchid Hotels, is the flagship of the entity of Royal Orchid Group of Hotels, operates 13 business and leisure hotels in six popular destinations. With 17 unique hospitality concepts in the offing, the Royal Orchid Group of Hotels is amongst India’s fastest growing hotel groups.