Hotel Leela Venture - IndiaInfoline
Hotel_Leela _Visit_Note.pdf Hotel Leela Venture Ltd - Visit Note
We met the management of Hotel Leela and came away cautiously positive on the company’s growth prospects amidst moderate room rental increases and volume expansion from new hotels in Chennai and Udaipur. Mumbai and Delhi ARRs are expected to remain healthy, but the company foresees, contrary to our expectations, a room tariff growth in Bangalore in FY09. Fuel expenses could dent margins by 150-200bps in current fiscal while FCCB conversions and longer payback period for the 330 room Delhi hotel remain key risks. Downgrade to MP.
