Tata Group's flagship hospitality company, Indian Hotels Company Ltd (IHCL), has reported a minor net loss of 6 crore for the July-September quarter.

However, the company's second quarter turnover of 379 crore is higher than the turnover of 358 crore in second quarter of previous fiscal, while first-half turnover jumped 7 per cent to settle at 775 crore.

The company attributed the quarterly loss to a combination of factors like lean season, higher costs of power & fuel, and a considerable rise in the new inventory.

Deepa Harris, senior VP of sales & marketing at IHCL, said that new hotel rooms grew 23 per cent, higher than the demand that jumped just by 20 per cent.

However, Harris expressed optimism for the second half of the year. Speaking on the topic, he said, "We are expecting increased occupancy levels around 75%, up from around 65% in the first half, and a marginal increase of
5-8% in room rates in the coming two quarters."

The hospitality company also announced its plans to further expand its room capacity by nearly 11 per cent in the next fiscal, with the addition of 13 hotels and more than 1,500 guest rooms in its existing 115 hotels.

On the effort to acquire Orient-Express Hotels, the IHCL said as both of the two companies are listed entities, they wouldn't like to make a comment until they hear the decision of Orient-Express' board.

Shares in IHCL shed 0.4 per cent from the previous close on the Bombay Stock Exchange (BSE) to close at Rs 62.95.