**[investwise]** Sayaji Hotels-Value Unlocking Could Create Tremendous Shareholder Value

 

Sayaji Hotels-Value Unlocking In Subsidiaries BSE 523710   Sayaji Hotels has two wholly owned subsidiaries in Barbeque-Nation Hospitality Ltd. and M/s Malwa Hospitality Pvt. Ltd. Given the recent response of marketmen towards the Jubilant Foodworks IPO, unlocking of value through a listing of BBQ Nation should have a similar impact on Sayaji Hotels.     FUTURE PROSPECTS BARBEQUE NATION RESTAURANTS: The Company is operating their restaurant business by way of self and wholly owned subsidiary M/s Barbeque-Nation Hospitality Ltd. The Company has already started five (5) restaurants with commencement of operation at Bandra (Mumbai), Indra Nager (Bangalore), Hyderabad, Kormangala ( Bangalore) and Gurgaon (Haryana).   The company has also started Restaurants in different parts of the Country such as New Delhi-Janakpuri, T. Nagar Chennai, Chandigarh and Lucknow in the financial year 2007-08 and the restaurants at Thane (Mumbai), Jaipur, Ahmedabad, Baroda, J.P. Nagar (Bangalore), Pune, Kolkata, Amritsar and Jalandhar .   The company has also planned to open Restaurants at Coimbatore, Mysore, Trivendram, Cochin, Nagpur, Nasik, Vizag, Bhavaneshwer Patna and other parts of India.   The response of all restaurants are exceptionally good. These outlets would give the company much needed visibility in the larger metros & add more value to the bottomline due to higher margin.   PUNE HOTEL PROJECT:   Pune Hotel is expected to see around 256 rooms in current position. The city currently registers the highest percentage of active developments among the larger metros cities in India.   INDORE AND BARODA HOTEL   The Indian hospitality industry is poised for tremendous growth. The demand-supply imbalance has prompted several national and international hotel companies to focus their energies towards expansion in India. The next few years will thus witness the opening of a number of hotels that will span the great competition and hospitality, in hospitality Industry.   Looking at the present market scenario and the reputation that Sayaji has built over the years which is further driven by the confidence that the city and the business community have reposed in the hotel and F & B Outlets. Indore is an emerging city in central India that serves as a gateway to a number of smaller towns and districts around it.   Taking into consideration the demand supply dynamics as well as the proposed improvement and development related initiatives in Indore, your Directors are of the opinion that the hotel market is expected to get more organized in the years ahead and demand for quality accommodations at reasonable prices is thus likely to grow.   The Company is propose to renovate all the floors upto 6th floor with upgrading the facility in line with 7th Grande at Indore Hotel Property. This expansion is envisaged to cater to the demand of premium rooms at Indore Hotel.   The company has also plan itself to foray in the budget hotels segment in order to meet the demand and supply gap for the rooms by setting of 200 rooms hotel at Indore under its wholly owned subsidiary M/s Malwa Hospitality Pvt. Ltd. at Indore and other expansion plans.   Vadodara Hotel has seen an occupancy rate 90% and Hotel market in the city is in a favorable position currently, due to rising demand for accommodation and limited supply of quality rooms.   Vadodara's economy is driven by heavy industry, with large investments in power, manufacturing, chemical, pharmaceuticals, oil & gas, biotechnology and petrochemicals, and we can increase our occupancy to the maximum possible by meeting the demand for the quality rooms at competitive rates. However, industrial activity is reviving and if this pace continues, the city's hotel market would benefit, in the immediate to medium term.   OPPORTUNITIES   The Hotel industry has seen revival for the last couple of years and with the current economic policies, the industry is poised to grow further. The foreign traffic inflow has shown impressive growth over the last years. The proposed expansion will get the benefit of brand equity that the hotel has created for itself. The Company is expected to reap the benefits of industrial development and emergence of Indore as a business center.   OUTLOOK   Vision of the Company is to make investments in the further development of the hotels, additions in the services to customers and is faring to generate profits for the years to come. Safe Harbor Statement: Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.   Nothing in this article is, or should be construed as, investment advice.

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