Hello
Thank you!
For me I view competition as increasing Supply
SAMHI is this premium position( not ultra luxury like Oberoi but premium) where the average key price is 1-2cr and the time to build considerable keys takes a few years!
I am not worried on the supply side as whatever a company does, they can’t hasten the process by a few years to build keys!
However, I am worried about Demand side! If consumers were to spend less and the traction reduces, there could be a problem!
In terms of tailwind for the company, my bet is mainly on the sectoral tailwind+deleveraging that the company can do. I am not so sure, but the cities that SAMHI operates in will have increasing demand compared to India so the rate at which the RevPAR can shoot up is higher!
Check Chalet hotels as well, they too operate in similar geographical areas
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