I don’t agree. You have to understand that current hotel industry managements and thought process has been around for years and not easy to change. Thus their business model will take time to evolve. Also with already so many assets in traditional hotel buildings, how they think about capital allocation at a scale in setting up structures like praveg. Praveg started with eco tourism and thus offers them to pick venues which are very differentiated and execute them very efficiently with lowest cost. Think margins and op leverage once their desired count of resorts are operational. Market is giving such high PE for this reason. By the time this moat gets impacted, Praveg would have scaled enough domestically and in international markets as well because they have first mover advantage. In regards to connection with politicians / government, I would think it is naive to take investment decision based on this half truth or totally false facts (false because they are not proven in public domain). Hypothetically even if they are connected, as investors our focus should be to compound in a stock with sound business model and should there be any political connection, I won’t mind if it benefits my investment. There has been enough talk about connections of Reliance and Adani, most long term investors have done well in these stocks
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