Mahindra Holidays & Resorts India Limited: history, ownership, mission, how it works & makes money

A Brief History of Mahindra Holidays & Resorts India Limited

Founded in 1996, Mahindra Holidays & Resorts India Limited (MHRIL) is a part of the Mahindra Group, a global federation of companies headquartered in India. MHRIL operates in the leisure and hospitality sector, focusing on vacation ownership and an extensive network of resorts across India and abroad.

The company launched its flagship brand, Club Mahindra Holidays, in 1997, marking a significant entry into the timeshare vacation space. Today, MHRIL boasts a membership base of over 260,000 members and a portfolio of more than 100 resorts, including locations in countries like Malaysia, Thailand, and the UAE.

In 2006, MHRIL became a publicly traded company. The Initial Public Offering (IPO) was a significant milestone, raising funds to further expand its resort network. By the end of March 2023, the company reported a revenue of approximately INR 1,200 crores, reflecting a consistent growth trajectory over the years.

MHRIL has made strategic investments to enhance customer experience, incorporating technology into its operations. This tech integration includes mobile applications for booking and managing vacations, which cater to the evolving needs of members.

In recent years, MHRIL has focused on sustainability and eco-friendly practices in its resorts. The company aims to improve its environmental footprint while providing enriching experiences to its members. Initiatives include waste management programs and energy-efficient operations.

Furthermore, MHRIL has expanded its offerings beyond vacation ownership, introducing experiences such as adventure sports and wellness retreats, thus enhancing the value proposition for its members. The company continues to innovate and adapt to the changing landscape of the travel industry.

As of October 2023, MHRIL's stock is listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), with a market capitalization of approximately INR 5,000 crores. The stock has shown a steady performance, with a year-to-date increase of over 25%, reflecting growing investor confidence in the company's long-term vision.

With its commitment to expanding the vacation ownership model and enhancing member experiences, Mahindra Holidays & Resorts India Limited is well-positioned for future growth in the hospitality sector. The strategic initiatives undertaken by the company aim at maintaining a competitive advantage in a rapidly evolving market.

A Who Owns Mahindra Holidays & Resorts India Limited

Mahindra Holidays & Resorts India Limited (MHRIL) is a prominent player in the vacation ownership and hospitality sector in India. The ownership structure of MHRIL is notably concentrated, with significant stakes held by key players.

As of the most recent filings, Mahindra & Mahindra Ltd., a major conglomerate, holds a substantial stake in MHRIL. The exact ownership breakdown is as follows:

The public shareholding consists of a mix of institutional and retail investors. Among the institutional investors, various mutual funds and foreign portfolio investors hold notable shares, contributing to the liquidity and stability of MHRIL's stock.

In the latest financial year 2022-2023, MHRIL reported a total revenue of INR 1,534 crore, which reflects a growth of 21% year-over-year. The net profit for the same period was reported at INR 157 crore, representing a margin of approximately 10.24%.

As of October 2023, the market capitalization of Mahindra Holidays & Resorts India Limited stands at approximately INR 11,200 crore. The company’s stock price has shown resilience, trading between INR 350 to INR 450 per share in recent months.

MHRIL is strategically expanding its portfolio, with plans to add several new resorts across key tourist destinations in India. The membership growth rate has also been notable, with an increase of approximately 15% in member subscriptions in the last fiscal year.

Mahindra Holidays & Resorts India Limited Mission Statement

Mahindra Holidays & Resorts India Limited (MHRIL) operates in the hospitality and leisure sector, primarily offering vacation ownership products through its Club Mahindra brand. The company's mission statement emphasizes creating "lasting holiday memories" for its members, promoting family bonding, and enhancing the overall travel experience. Their approach focuses on a sustainable tourism model, where the emphasis lies on responsible and eco-friendly practices.

The company's mission is supported by operational excellence and a commitment to member satisfaction. As of FY 2022-23, Club Mahindra reported a membership base of over 300,000 members across its network. The company aims to expand its footprint not only in popular tourist destinations across India but also internationally, with properties in diverse locations like Thailand and Maldives.

Financially, MHRIL has demonstrated strong performance in recent years. For FY 2022-23, the company recorded total revenue of approximately ₹1,200 crores, marking an increase of 15% year-on-year. This growth has been attributed to an increase in membership sales and enhanced occupancy rates across its resorts.

MHRIL also emphasizes customer-centric values and innovation in its service offerings. Continuous efforts are made to enhance digital interactions with members, evident in the growing uptake of its mobile application and online services, which has seen an increase of 40% in user engagement over the past year.

The company participates actively in sustainability initiatives, implementing practices such as waste management and water conservation across its properties. This commitment is reflected in its CSR activities that focus on community upliftment and environmental stewardship. The recent initiative to plant 100,000 trees in various regions serves to bolster its sustainability mandate.

MHRIL’s mission drives its long-term strategy and operational goals, ultimately positioning it as a leader in the vacation ownership market in India and paving the way for future expansion both domestically and internationally.

How Mahindra Holidays & Resorts India Limited Works

Mahindra Holidays & Resorts India Limited (MHRIL) operates in the leisure and hospitality sector, primarily focusing on the vacation ownership business under its brand, Club Mahindra. The company was established in 1996 and is part of the Mahindra Group, a diversified multinational corporation.

MHRIL's primary business model revolves around the concept of vacation ownership, where members purchase 'Holiday Ownership Plans' allowing them access to a network of resorts. As of September 2023, MHRIL has over 260 resorts across 100 locations in India and abroad, catering to more than 300,000 members.

Membership fees contribute significantly to MHRIL's revenue, along with the sale of vacation ownership plans. The company reported a growth in membership sales, increasing its member base by approximately 10% from the previous year. This rise can be attributed to the post-pandemic recovery in travel and tourism, coupled with effective marketing strategies aimed at first-time travelers.

Furthermore, MHRIL has expanded its offerings to include vacation packages and experiences, enhancing the overall value proposition for its customers. In the fiscal year 2022-23, the average revenue per member rose to approximately INR 7,600, up from INR 6,800 in the prior year.

In terms of operational excellence, MHRIL has focused on enhancing customer satisfaction. As of the latest customer feedback survey, the company maintained a customer satisfaction score of 90%, reflecting its commitment to service quality and guest experience.

Mahindra Holidays also emphasizes sustainability, with initiatives aimed at reducing the environmental impact of its operations. The company has set a target to achieve 100% renewable energy usage across its resorts by 2025.

The stock performance of Mahindra Holidays & Resorts has shown resilience, with the share price reaching approximately INR 408 as of September 2023. Over the past year, the stock has appreciated by roughly 25%, outperforming the BSE Sensex index which saw a growth of 15% during the same period.

MHRIL's strategic alliances, including partnerships with various travel agencies and online travel platforms, have further bolstered its market presence. This network allows the company to tap into new customer segments seeking diverse travel experiences.

The company has also implemented various technology-driven initiatives, including a mobile app that allows members to book vacations, access resort information, and manage their accounts conveniently, reflecting its focus on digital transformation in the tourism industry.

How Mahindra Holidays & Resorts India Limited Makes Money

Mahindra Holidays & Resorts India Limited (MHRIL) generates revenue primarily through its vacation ownership business, which involves providing holiday ownership solutions to customers. The company's flagship brand, Club Mahindra, is a prominent player in this sector.

The company adopts a points-based system allowing members to use points to book holidays at various resorts across India and internationally. As of FY 2022-23, MHRIL reported a membership base of over 300,000 members. In the same fiscal year, the company recognized consolidated revenue of approximately ₹1,150 crore, marking a growth of 17% year-on-year.

MHRIL's revenue streams include:

• Membership Sales: The company earns revenue from the sale of vacation ownership memberships, which are available in various packages.
• Resort Operations: Revenue generated from managing and operating the resorts, including room bookings and ancillary services.
• Food and Beverage: On-site dining options at the resorts contribute significantly to overall revenue.
• Retail and Merchandise: Sale of local crafts and other items within the resort premises.

In FY 2022-23, the revenue breakdown was as follows:

MHRIL also focuses on enhancing guest experiences through various initiatives, which include upgrading facilities and expanding resort locations. As of FY 2022-23, the company operates over 160 resorts across India and abroad.

In addition to the core revenue streams, MHRIL has ventured into strategic partnerships and collaborations that help to diversify its offerings. For instance, alliances with travel agencies and online travel platforms have expanded their market reach, thereby boosting membership sales and occupancy rates.

Furthermore, MHRIL's operating margin stands at approximately 30%, highlighting the effective management of its cost structures alongside revenue growth. In FY 2022-23, the company reported a profit after tax of about ₹150 crore, translating to an increase of 25% compared to the previous fiscal year.

The company continues to innovate in customer engagement, leveraging technology to enhance the booking experience and develop a loyalty program that strengthens member retention. This tech-driven approach aims to improve not only the sales process but also operational efficiency across all resorts.

Overall, Mahindra Holidays & Resorts India Limited exemplifies a diversified approach to revenue generation within the vacation ownership sector, combining traditional hospitality services with modern marketing and operational strategies to drive sustainable growth.