Thanks for starting this thread, something which I had in my list for a couple of weeks now
You have covered almost all important points. A couple of points which I found interesting are:
- They do not build the hotels from scratch. They go for dislocated hotels which are not working up to their optimum capacities. Once these hotels are identified, they renovate these hotels, re-brand those and operate those hotels with the likes of Marriott, IHG and Hyatt.
This enables them to do away with the challenges involved in building the asset from scratch. Moreover their cost per rooms are very low as compared to industry.
- They have shared service centres where they carry out operations such as finance, accounting, engineering and procurement centrally. This allows them to have lowest average staff cost per room.
- The management has extensive experience in the hotel industry.
A couple of risks that I found are:
- Institutional/PE holding.
- Operates in the upper-midscale and midscale segment, which faces higher competion.
Disc: Invested.
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