Asian Hotels firms up expansion plans - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Asian Hotels firms up expansion plans

Feb 11, 2000

Asian Hotels Ltd (AHL) plans to set up two new five star hotels in Mumbai (450 rooms) and Calcutta (250 rooms) at an estimated cost of Rs 4.6 bn. These hotels would be operated by Hyatt International and the promoters plan to put in Rs 1.8 bn in these two projects as their contribution. Asian Hotels Ltd owns and operates the five star deluxe 518 room Hyatt Regency hotel in New Delhi. It reported a turnover of Rs 1.4 bn in FY99.

The rest of the project would be financed by debt to the tune of Rs 2.8 bn and the hotels are expected to be ready by 2001. Like AHL's existing hotel property, the Hyatt Regency Delhi, these two hotels will be managed by Hyatt International. However Hyatt International will not take a equity stake in these projects.

Though occupancy rates in metro cities like Mumbai and Calcutta are yet to pick up, analysts expect them to start improving over the next one year with the improvement in the economic scenario and stable political condition. If AHL manages to start these hotels by next year it would be one of the first few hotel companies to open new hotels and this could be to its advantage if occupancy rates were to pick up by then. However as AHL has been a zero debt company in the past this would pressure on its margins as interest costs would soar when the hotels' start operations.

Market View:
Hotel Stocks have been out of favour with analysts due to fall in occupancy rates and pressure on average room rates in the five star city hotels and Asian Hotels is no exception to this. Many analysts have a "Sell" on it.

Equitymaster requests your view! Post a comment on "Asian Hotels firms up expansion plans". Click here!

  

More Views on News

Revenge Travel is Here. 9 Stocks Likely to Benefit (Views On News)

Sep 4, 2021

The term 'revenge travel' refers to the desire of going on a vacation after an extended period of lockdown.

Why Did Shares of Jubilant FoodWorks Rally Today? (Views On News)

Jun 16, 2021

The company sees a 90% recovery despite minimal dine-ins.

Why Did Burger King India Shares Plunge 7% Yesterday? (Views On News)

May 28, 2021

Key takeaways from Burger King India Q4FY21 results.

Indian Hotels Q4 Review: Reports Net Loss, Revenue from Operations Decline (Views On News)

May 3, 2021

Key takeaways from Indian Hotels Q4FY21 results.

More Views on News

Most Popular

Infosys vs TCS: Which is Better? (Views On News)

Nov 26, 2021

In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake (Views On News)

Nov 24, 2021

Shares of this edible oil company zoomed over 50% in three days after ace investor bought around 1% stake.

Don't Sell these Stocks if the Market Falls (Profit Hunter)

Nov 17, 2021

These are the 3 types of stocks that you should not sell in a market crash.

How to Find Your Next 10-Bagger in this Market (Profit Hunter)

Nov 19, 2021

The #1 make or break factor in your portfolio you shouldn't ignore.

6 Popular Stocks that Turned into Penny Stocks (Views On News)

Nov 27, 2021

A look at popular stocks that crashed big time and never recovered, i.e. which went from 'Multibaggers to Multibeggers'.

More

Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

ASIAN HOTELS (NORTH) SHARE PRICE


Nov 30, 2021 (Close)

TRACK ASIAN HOTELS (NORTH)

  • Track your investment in ASIAN HOTELS (NORTH) with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

MORE ON ASIAN HOTELS (NORTH)

ASIAN HOTELS (NORTH) - MARRIOT COMPARISON

COMPARE ASIAN HOTELS (NORTH) WITH

MARKET STATS