If you were to see the slides shared by the management, few things that come out:
- this particular investment is cash accrual funded, so good news
- Basis the revpar (about 6k) of the nearby upscale properties as shared by management, current 142 rooms once upgraded have potential to make 32 cr annually and with additional 200 room once built, the total revenue easily exceeds 75 cr plus. Ofcourse there is going to be additional capex in upgradation and building new rooms but once completed the hotel with revenue potential of 75 cr is not a bad acquisition in 203 cr.
Basis my understanding this is how I read the acquisition and numbers are based on guestimates with the given data. Ofcourse management will clarify details on Monday conference call.
| Subscribe To Our Free Newsletter |
