1 percent to Rs.1,073.06 crore from Rs.1,155.11 crore in the the previous year. The company attributed the drop in revenues to the combined effect of the Mumbai terrorist attacks and the global economic meltdown.

'The global financial crisis and the terror attacks on India's financial capital Mumbai last November have resulted in a sharp drop in foreign visitors to India,' Oberoi said.

The tourism industry is witnessing an unprecedented downturn, he said.

'Hotel occupancies and revenues have been significantly affected and the travel and tourism industry is experiencing challenging times. The recent H1N1 pandemic could further restrict global travel.'

Oberoi, however, added that the hotel industry would recover from the crisis by next year.

'We expect the first signs of recovery in our industry to take place during the winter season 2010.'

The company is planning to add 2,600 rooms to its present 4,022-room capacity by 2012-end, he added.

It is also scaling up its flight kitchen business, with operations in Mauritius, Kochi and Kozhikode expected to commence operations in 2010 while a new flight kitchen in Delhi is expected to start in 2011.