Investment Advice for Stocks (Share), MF and Personal Finance » Hotel Sector

Hospitality major East India Hotels (EIH) soars 20 per cent

admin — Tue, 31 Aug 2010 07:30:43 +0000

Hospitality major East India Hotels (EIH) today soared 20 per cent on its’ stake sale deal with Mukesh Ambani – led RIL, extending its gains for the second consecutive session. RIL itself was down over 1 per cent on BSE in the early trade. EIH, which gained 11 per cent yesterday, started the day with a jump of 19.97 per cent, the maximum permissible one-day gain on the Bombay Stock Exchange, to Rs 180.80. The scrip was trading at Rs 161.95, up 7.47 per cent in the morning trade.

Shares of EIH saw a similar rise on National Stock Exchange and zoomed 20.01 per cent to a year high of Rs 181.10. However, shares of Reliance Industries (RIL) failed to cheer the deal and plunged 2.26 per cent to hit a month low of Rs 926.25, a day after the company bought a 14.2 per cent stake in EIH.

Yesterday, RIL had joined hands with promoters of the Oberoi group to thwart a possible takeover of EIH by key rivals ITC, by buying 14.12 per cent stake at Rs 1,021 crore in the company that runs the Oberoi brand of hotels and resorts. The stake purchase from Oberoi Hotels Private Limited and other promoters of EIH Limited was made through RIL’s wholly-owned subsidiary, Reliance Industries Investment and Holding Private Limited.

ITC Ltd, which has 14.98 per cent in EIH Ltd rose 1.63 per cent to Rs 161.90 in the start of the trade. Meanwhile, the 30-share benchmark sensex was trading weak at 17,927.43, down 0.53 per cent from the previous close.

Hospitality major East India Hotels (EIH) soars 20 per cent is a post from: Indian Stock Market Tips

RIL won’t have involvement in management or operation: EIH

admin — Tue, 31 Aug 2010 06:29:00 +0000

Reliance Industries on Monday acquired a 14.12% stake in East India Hotels (EIH) from the company’s promoters. Post the deal, the promoters will hold 32.31% stake in the company.

“RIL wanted to invest in the hospitality industry and we welcome their investment in our company as it will satisfy our growth strategy. RIL will also not have any involvement with the management or operation of EIH. Whether they will have any board representation, will depend on the companys board,” said Chairman and Chief Executive Officer of EIH, PRS Oberoi.

Why RIL?

“There were other interested players that had approached but they were not compatible with the company’s objectives,” Oberoi said adding that Reliance is a long-term investor. “Moreover we (Reliance and EIH) have no conflict of interest.”

RIL won’t have involvement in management or operation: EIH is a post from: Indian Stock Market Tips

Indian Hotels –Buy- Sharekhan

free stock tips — Fri, 09 Jul 2010 07:21:00 +0000

The Q1FY2010 (stand-alone) performance of Indian Hotels Company Ltd (IHCL) and the other hotel companies was adversely affected by a bleak macro environment and the outbreak of swine flu in India.

However, things had improved significantly in the subsequent quarters with an improvement in the global macro environment. Hotel companies (including IHCL) had posted a strong improvement in their occupancies in the third and fourth quarters of FY2010. This was on the back of the revival in the Foreign Tourist Arrivals (FTA) and increased domestic tourism.

With the sustenance of the strong growth in the FTAs (which increased by 8.0% year-on-year [y-o-y] in April-May 2010) and the likely improvement in the corporate and domestic leisure travel, we expect IHCL’s occupancy ratio to stand at approximately 69.0% in Q1FY2011 as against 52% in Q1FY2010. Also, we expect an increase of about 11% y-o-y in the average room rates (ARRs) during the quarter.

The improvement in the occupancies and the higher ARRs would result in a strong improvement in the operating profit margin (OPM) due to the operating leverage. Thus, we expect the OPM of IHCL to stand at 22.5% in Q1FY2011 as against 12.1% in Q1FY2010. Consequently, we expect the company to report an adjusted profit after tax (PAT) of Rs16.5 crore in Q1FY2010 as against a loss of Rs17.6 crore in Q1FY2010.

As occupancies are coming back on track, one needs to watch out for the improvement in the ARRs and the IHCL management’s outlook on the business environment in the coming quarters. Also, the completion of projects as per schedule and the re-opening of the Palace wing of Taj Mahal Palace Hotel are the key monitorables in the near term. The international properties posted a subdued performance in FY2010 on account of the weak global macro environment.

Thus, an improvement in the business performance of these international properties is also one of the key things to watch out for in the medium to long term. At the current market price the stock trades at 19.1x its FY2012E (consolidated) earnings per share (EPS) of Rs5.4. We maintain our BUY recommendation on the stock with a price target of Rs111.

Indian Hotels –Buy- Sharekhan is a post from: Indian Stock Market Tips

Gujarat works towards declaring Tourism as an Industry

admin — Fri, 25 Jun 2010 07:47:53 +0000

To promote its diversity to attract tourists.

After witnessing an arrival of just 1,25,000 international tourists, Gujarat government is gearing up to focus exclusively on toursim opportunities in the state.

From roping in Amitabh Bachchan, setting up tourism institutes to identifying Special Tourism Investment Regions (STIR), the state government is exploring various avenues to popularise Gujarat as a tourist destination. The state has even set aside a marketing budget of Rs 45-50 crore to promote tourism.

“The diversity of Gujarat can itself be a ‘brand’ and that is what we intend to promote,” said Kamlesh Patel, Chairman, Tourism, Tourism Corporation of Gujarat at the Gujarat Tourism Conclave 2010 held by the Department of Tourism, Government of Gujarat in partnership with Federation of Indian Chambers of Commerce and Industry (FICCI).

With an aim to sensitise the Indian tourism industry on Gujarat tourism, the state is planning various initiatives and policies. “Gujarat is working towards declaring tourism as an industry. We have identified Special Tourism Investment Regions, which are the areas where people like to go but do not have proper places to stay. A policy is expected to be out in this regard soon. Besides, the state government plans to organise road shows across the country, meet members of trade in various cities. We will also set up large number of institutes in the next two years that help cater to the required manpower in the tourism industry,” said Vipul Mittra, Secretary Tourism & Civil Aviation, Government of Gujarat.

The conclave also saw A FICCI-Yes Bank study on ‘Furthering the growth of Gujarat Tourism; With special emphasis on health and wellness tourism’ being released by Jaynarayan Vyas, Minister for Tourism, Health & Family Welfare, Government of Gujarat. The study reveals that while Gujarat witnessed 3,00000 international arrivals in the state last year, of which 170,000 were Non-resident Indians, only 1,25,000 international travellers visited the state for leisure as compared to 10,70,000 leisure travellers to the neighbouring Rajasthan.

In his inaugural address, Vyas said that the tourism growth in the state will overshadow the industrial and agricultural growth. Business, leisure and medical tourism will take Gujarat to the forefront. He urged the national and state tour operators to consider Ahmedabad as the ‘Gateway Point’ to travel to the rest of the country. On the medical tourism industry, the study revealed that medical tourism was growing in India at 30 per cent annually. For Gujarat, the main challenges are uncredited hospitals and lack of quality of accreditation, need to improve standards of hospitals beyond Ahmedabad and Vadodara, infrastructure facilities, face competition from Malaysia and Thailand. Some of the recommendations by Yes Bank to overcome these challenges were domestic and international partnership, suitable logistics and medical insurance, to name a few.

This first ever Gujarat Tourism Conclave 2010 focused on tourism opportunity, air connectivity, health and wellness tourism and lay down a Tourism Road Map for Gujarat, urged for feedback from the participants and brainstormed on pertinent policy issues with decision makers of this sector. A few suggestions from the participants were to explore adventure and archeological toursim in the state at Mithapur, Kutch and Dholavira, hiring tourism professionals and creating a single window clearance for various projects.

Gujarat works towards declaring Tourism as an Industry is a post from: Indian Stock Market Tips

Medium Term Investment : Hotel Leela

free stock tips — Wed, 17 Feb 2010 07:09:21 +0000

We had recommended this Hotel Sector major as a buy in our issue dated 21st Dec 09. This was given as a buy around 43 levels and also on dips towards 41 for a target of 53-55 at first.

This level had a cluster of resistances and once that is crossed to a higher target of 66 / 75 was projected. Looking at the chart we find that prices moved just as we had expected, even capturing the dip levels in the very next day after our recommendation.

Prices covered great distance since then (with over 20% gains) and in Jan 2010 also managed to achieve the first target level near 53. We see that two weeks of strong advance made this a superb outperformer not only in the market but also in the sector like we mentioned before, 53 region has a cluster of resistances and hence the halt as well.

Over here prices have completed one of the important sets of a fractal accumulation pattern on weekly chart. Around this region is also the 50% retracement of the entire primary fall commenced from May 06 top. Therefore unless we see a volume led break above this region, we may see prices consolidating near the highs or moving into a Corrective mode owing to profit booking. But even if there is a dip in coming sessions, the outlook still remains bullish as the prices are still holding above the 1×2 angle line in force since May 06.

Therefore we recommend readers to hold on to their bullish bias in this one and keep pending longs intact. Ideally, some profits should have been booked at the first target and hold for the second one. For those who have not done so, can still use rallies to book some profits and hold for the second.

Souce : IDBI Capital

Medium Term Investment : Hotel Leela is a post from: Indian Stock Market Tips

Medium Term Investment Taj GVK

free stock tips — Wed, 17 Feb 2010 05:06:52 +0000

Hotel sector stocks had been on a fine rally since April 2009, resolving some good long term patterns on charts. The bullishness was also apparent in the form of strong fundamental background, positive news flows, significant OI build up and excellent rollover statistics.

Based on a detailed view of the hotels industry, with price, patterns and its implications, we covered the Hotel sector stocks in this segment on Dec 21 2009. The stock was moving in a sideways phase but considering the big picture as bullish we expected this stock to stage a breakout above 160 region and hence recommended as a buy around 135-140 levels. Looking at the chart alongside we find that the last 3 months unfortunately did not help prices much in

terms of rallying as the trend started getting volatile on heavy profit booking near resistances. This trapped the prices into a range bound phase in 140-160 band over the last 3 months.

However having survived above our stoploss levels (around 110) and holding support of ascending trendline and value areas, managed to bounce back from a low of 138. Prices are actually consolidating near the upper end of the rally, waiting for a decisive breakout above 160 levels and also to resolve one set of the fractal rounding pattern on higher degree charts. The overall trend continues to show promise and signals the possibility of meeting our mentioned targets of 260-270. Hold existing open positions for the target. Those who have bought at lower levels, can book some profits around 220.

Souce : IDBI Capital

Medium Term Investment Taj GVK is a post from: Indian Stock Market Tips

Bhagwati Banquets launches CLUB TGB

admin — Thu, 24 Dec 2009 01:37:42 +0000

Bhagwati Banquets and Hotels has launched first of it’s kind exclusive club with world best amenities and facilities named as ‘CLUB TGB’ in city of Surat, alongside it’s upcoming five star hotel and convention center. The launch of club in Surat, Gujarat is expected to prove company’s right step towards right direction.

Bhagwati Banquets & Hotels operates the largest convention center and largest banqueting facility with over 23,000 sq ft of indoor and outdoor meeting space for all occasions with 35 guest rooms and 2 grand suite rooms in Gujarat.

Bhagwati Banquets launches CLUB TGB is a post from: Indian Stock Market Tips

Tata Group plans 50 Ginger hotels in India

admin — Mon, 14 Dec 2009 00:49:52 +0000

Scenting opportunity in the budget hotel segment, diversified conglomerate Tata Group plans to construct 50 hotels of its no-frills chain– Ginger– across India in the next four years.

: Tata Ginger Hotel

Indian Hotels Company Ltd (IHCL), the group’s listed hospitality firm, owns 20 Ginger hotels in the country through its subsidiary Roots Corporation Ltd (RCL).

“Clearly, there are signs that inbound tourist traffic is gaining momentum. In the next 3-4 years, we’d love to build a total of 70 hotels if not more. So, at an average of 100 rooms per hotel, our inventory would go up to 7,000 rooms during this period,” Roots Corporation Ltd, Chief Executive Officer, Prabhat Pani told PTI.

While not specifying the quantum of investment, he said the capital requirement would be met through debt and equity from parent company IHCL.

The company has commenced work on hotels in Chennai, Surat , Indore, Tirupur, Manesar and Lucknow , he added.

“Current development in the budget category is low. There are not many players in this segment and so there is immense opportunity here. By 2011, about 25,000 new upscale rooms are expected in major Indian cities versus nearly 18,000 rooms in midscale and budget segments,” Pani said.

RCL last week inaugurated second Ginger hotel in Pune and is scouting for land to set up two more in the city.

Mumbai and Delhi coupled with the National Capital Region (NCR) will be our biggest markets. Our Surat and Indore properties are in advanced stages of construction. In Maharashtra , we are looking to set up hotels in Nanded, Nagpur and two more in Pune,” Pani said.

There are 20 Ginger hotels across Agartala, Ahmedabad , Bangalore, Bhubaneswar, Durgapur, Durg, Goa , Pune, Mangalore, Thiruvananthapuram, Guwahati, Haridwar, Jamshedpur, Ludhiana, Mysore, Nasik, New Delhi, Pantnagar, Puducherry and Vadodara.

Ginger offers modern conveniences and facilities like tea/coffee maker, Wi-Fi connectivity, 20-inch wall-mounted LCD TV, self-controlled AC and mini-fridge among others at rates ranging from Rs 1,000 to Rs 1,700.

Roots Corp, whose first few hotels were built by acquiring land, is open to expansion through redevelopment of existing properties, replacement of guest houses and via public private partnerships, he said.

The company’s hotel in New Delhi has been built in partnership with government-owned railway agency IRCTC.

“If we can buy land, we’ll buy and set up a hotel. We may lease or we may get into a management contract. It’s important for us to be in the market. We are aiming for a growth rate higher than that of the industry,” Pani said.

He added that occupancy across all 20 properties in the past three months stood at between 65 per cent to 75 per cent, while they are fully booked for Christmas and New Year.

Tata Group plans 50 Ginger hotels in India is a post from: Indian Stock Market Tips