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Day: December 7, 2024

Wedding season in India sets new record for hotel bookings and revenue

Wedding season in India sets new record for hotel bookings and revenue

As the wedding season in India intensifies, hotels are experiencing a surge in bookings, with many properties fully booked or sold out. This season is proving to be a record-breaker, with several hotels reporting their highest-ever business figures post-pandemic and some even witnessing the most successful wedding season in their history.

Record-breaking business for hotels

According to a report by The Economic Times, Ashok Singh Rathore, area director for Rajasthan at IHCL and general manager of Rambagh Palace in Jaipur, highlighted that this year’s wedding bookings have far exceeded expectations. 

Post-pandemic, our property has recorded the highest-ever average daily rates and occupancies last month, he stated. According to Rathore, room rates typically hit Rs 1 lakh during peak seasons like Christmas and New Year, but the wedding boom allowed these rates to be achieved even earlier. 

Guests are seeking more customisation and prefer iconic properties, and people’s willingness to spend has increased, he said.

Hotel chains see historic revenue growth

The wedding season has also brought significant revenue for hotel chains. Nikhil Sharma, managing director and area senior vice-president for South Asia at Radisson Hotel Group, revealed that the October to December quarter has set a new record for the highest revenue-generating period in the company’s history in South Asia. 

He said that Radisson’s resort properties in Mamallapuram, Lonavala, Karjat, and Udaipur are seeing high demand, with several dates already sold out due to the popularity of destination weddings. 

Raj Chopra, chairman and managing director of JW Marriott Mussoorie and JW Marriott Goa, echoed similar sentiments, reporting the highest-ever bookings and sales for weddings at his properties. An estimated 450,000 weddings were expected to take place in Delhi alone over three weeks, he said, reflecting the widespread wedding boom.

Increased bookings and customisation demand

Fairmont Jaipur has experienced a 25 per cent rise in bookings this year, according to General Manager Rajat Sethi. 

The report quoted Parveen Chander, executive vice-President, commercial at IHCL, as saying that the wedding season, which began in November, is set to significantly boost revenues, thanks to an increased number of auspicious wedding dates in the latter part of the financial year. 

Several IHCL hotels in destinations like Jaipur, Udaipur, Goa, Kerala, Tirupati, as well as Delhi, Mumbai, Bengaluru, and Hyderabad, are seeing high demand.

Travel surge driven by wedding demand

The report quoted Aloke Bajpai, Group CEO of ixigo, as saying that the wedding season has had an impact on travel as well across India. 

Flight bookings have surged by 70-80 per cent year-on-year for metro cities as well as leisure spots like Delhi, Mumbai, Srinagar, Jaipur, and Goa, he said. 

The demand is also increasing for Tier-II and Tier-III cities, with flight bookings to Amritsar, Chandigarh, and Patna rising over 70 per cent compared to last year. 

At Shangri-La Eros in New Delhi, General Manager Abhishek Sadhoo reported significant revenue growth, driven by both the surge in bookings and an increase in the average pricing per person. 

Rathore added that wedding guests are increasingly seeking personalised experiences. 

Brides and grooms are now more involved in the planning process. They have a strong influence on curating after-parties and events, demanding greater customisation across the board — whether it’s the venues, décor, or even the choice of crockery and cutlery, he said.

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LG India files DRHP with Sebi to raise Rs 15,000 crore through IPO

LG India files DRHP with Sebi to raise Rs 15,000 crore through IPO

The Indian subsidiary of South Korean major LG Electronics on Friday filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India to raise Rs 15,000 crore through an initial public offering (IPO). This comes within two months of the Indian unit of South Korean automobile major Hyundai going for a Rs 27,870-crore IPO—the largest in India.           

The LG Electronics India IPO is an offer for sale and is likely to offload up to 101.8 million equity shares amounting to a 15 per cent stake. 

This will make it India’s fifth-largest issue, ranking after Coal India’s Rs 15,200 crore in 2010. Hyundai Motor India’s (HMI’s) listing in October, though biggest in India, received a lukewarm response from investors, garnering just 2.4 times the subscription. HMI’s shares still trade 4 per cent below their issue price.

Just like LG  Electronics India, HMI’s IPO was entirely an offer for sale, with the Seoul-based parent divesting 17.5 per cent in its Indian arm. 

This DRHP comes at a time when South Korea is in turmoil after its President Yoon Suk Seol declared emergency marital law, which was reversed hours later.

Morgan Stanley India, J P Morgan India, Axis Capital, BofA Securities India, and Citigroup Global Markets India are the book-running lead managers for the IPO. 

The Indian arm of the South Korean major competes with global as well as Indian companies like Voltas, Havells, Godrej, Blue Star, Haier, Whirlpool, Philips, Samsung, and Sony.

In India, LG Electronics is the largest home appliances and consumer electronics player after Samsung India Electronics. 

Its revenue from operations in FY24 stood at Rs 21,352 crore while Samsung India Electronics’ revenue in the previous financial year stood at Rs 99,541.6 crore, according to the company’s DRHP. 

Havells India and Godrej & Boyce Mfg Co stand at number three and four, respectively, in dominating the Indian consumer electronics and home appliances space. 

“We are the market leader in India in major home appliances and consumer electronics (excluding mobile phones) in terms of volume for the three-month period ending June 30, 2024, as per the Redseer Report,” the company said in its DRHP.

It added, “Additionally, we have been the number one player in this industry for 13 consecutive years (CY2011 to CY2023) as per the value market share in the offline channel in India, as noted in the Redseer Report.” 

The company also said in its DRHP that India’s appliances and electronics market had grown at around 7 per cent in the last five years and this growth was expected to accelerate to around 12 per cent in the next five years, driven by rising disposable incomes, growing urbanisation, and an increasing penetration of appliances and electronics in both urban and rural areas.

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Political donation record: Musk spent $270 million on Trump’s campaign

Political donation record: Musk spent $270 million on Trump’s campaign

Tech billionaire Elon Musk has spent at least $270 million to support Donald Trump’s bid for the US presidency, making him the largest political donor in the country, according to new federal filings.

Record-breaking political contributions

Data from the nonprofit OpenSecrets reveals that Musk’s contributions have surpassed any single political donor’s spending since 2010, setting a new record. Musk, a vocal supporter of Trump, played a key role in funding various aspects of his presidential campaign, including financing door-knocking operations and making appearances at rallies. 

In recognition of his financial support, Musk has secured a cost-cutting advisory role in Trump’s incoming administration. His efforts have been crucial in helping Trump navigate the electoral race and build momentum.

Surpassing previous top donor Tim Mellon

Musk’s $270 million contribution in the 2024 election cycle eclipsed the previous record set by Tim Mellon, the top Republican donor in recent years, who contributed close to $200 million. According to filings with the Federal Election Commission, Musk donated $238 million to America PAC, a political action committee he founded to support Trump. Additionally, $20 million went to RBG PAC, which aimed to soften Trump’s stance on abortion through targeted advertising.

Close ties between Musk and Trump

Musk has consistently supported Trump, even inviting the former president to witness a SpaceX rocket launch in Texas. The relationship between the two has deepened, with Trump selecting Musk to lead the newly created Department of Government Efficiency (DOGE). Together, they have promised to implement substantial federal spending cuts.

Potential conflict of interest concerns

Musk’s new role raises concerns over potential conflicts of interest, given that his companies interact with both US and foreign governments in various ways. This connection has fuelled debates about the potential for undue influence over policy decisions.

In addition to Musk’s prominent role, Trump has nominated several Musk allies for positions in his administration. These include investor David Sacks, who will serve as the AI and crypto czar, and billionaire astronaut Jared Isaacman, who has worked closely with SpaceX and will head Nasa.

Other key donors poised for roles in Trump administration

Several major donors who contributed generously during the final stages of the campaign are set to secure positions in the new administration, pending Senate confirmation.

-Howard Lutnick, CEO of Cantor Fitzgerald LP and nominated for Commerce Secretary, donated nearly $5 million to super PACs supporting Trump.

-Jeffrey Sprecher, founder of Intercontinental Exchange, whose wife Kelly Loeffler is tapped to head the Small Business Administration, contributed $1 million.

-Linda McMahon, selected to lead the Education Department, also gave $1 million, according to FEC filings for donations made from mid-October to Election Day.

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