The company is currently faced with a low rate of return on its capital on account of the large capex undertaken in acquisitions and upgradation last year. For the first quarter, IHCL registered a turnover of Rs 144.46 crore and a net profit of Rs 17.41 crore. IHCL plans to pump in Rs 38 crore for luxury hotels in the metro cities and another Rs 22 crore in the rest of the hotels for renovation and upgradation during the year, Goel said. The company is also in the process of shifting its office from the hotel premises freeing 5,400 square feet which will be used for commercial purpose like shops and showrooms. The company would also acquire new office premises on lease to shift from the hotel premises.

The 25 per cent stake acquired in the GVK group hotel located in Hyderabad, would generate an operating revenue of around Rs 3.5 crore in addition to the dividend. The management fees from other two acquired hotels.