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Kamat Hotels

Printed From: The Equity Desk
Category: Investment Ideas - Creating winning portfolios!
Forum Name: Stock Synopsis
Forum Discription: A bried discussion of companies on very specific matters. Normally this is the prelude for further research as always members would be discussing quality companies with good management only
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=793
Printed Date: 16/Apr/2014 at 10:09am


Topic: Kamat Hotels
Posted By: Mr. V
Subject: Kamat Hotels
Date Posted: 02/Mar/2007 at 9:41pm
Valuations look very attractive. PE < 15 and there is going to be a definite jump in earnings because the expansions in the existing properties are near completion.
 
Their long term strategy also looks very interesting. Apart from focusing on the premium and luxury segment, they are also looking at the budget & business segments. Moreover, they are targeting tier 2 and tier 3 cities, which I believe will see a lot of action over the next 5-6 years. Another advantage in tier 2/3 cities is that the real estate prices are low means they will have to take on less debt and operating margins are better.



Replies:
Posted By: basant
Date Posted: 02/Mar/2007 at 9:46pm
I think it is doing well in the Hyderabad region. A person who studies markets quite well was bullish on this one.

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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in


Posted By: Mr. V
Date Posted: 02/Mar/2007 at 11:46pm
Are you sure about Hyderabad ?
From their website, this is the list of properties owned by them
http://khil.com/our_properties.htm - http://khil.com/our_properties.htm
 
Current properties
The Orchid -An Ecotel Hotel, Mumbai 
Rodas -An Ecotel Hotel, Mumbai 
Lotus Suites - Mumbai 
Lotus Suites - Goa 
Uppal's Orchid An Ecotel Hotel, New Delhi 
Kamats Silvassa Resort - Silvassa 
Hotel Siddharth - Nasik 
Kamats Murud Beach Resort 
Future Plans (Some of them are partly completed)
Expansion Of "The Orchid", 5 Star ,Mumbai ( 130 new rooms making the total capacity 375 rooms. Phase 1 is completed and Phase 2 will be completed this quarter. This probably is the reason for the bump in earnings in the last quarter)
Orchid Heritage Jadhav Gadhi, At Pune
The Orchid, 5 star, Raipur Chatissgarh
Orchid Resort 5 Star Khawne In Sindhudurg District ,Maharashtra (2008)
Lotus Suites Four Star At Nagpur (2007)
Lotus Suites, 4 star, Amboli ,Sindhudurg District, Maharashtra otus Suites Four Star At Nagpur
Lotus Suites At Aronde , Sindhudurg District Maharashtra
Lotus Suites At Baddi , Himachal Pradesh (Located in the Pharma SEZ, Complete Tax holiday as well)
The Lotus Suites 4 Star , Raipur Chatissgarh
50 Kamfotels over the next 10 years
 
Couple of weeks back there was a press release about Kamat Hotel taking over the management of Vedanta Hotels in Aurangabad.
 
They seem to have quite a few hotels lined up for Sindhudurg District, I personally have no clue about this place. Does this district really have such a big potential ?


Posted By: nikhil090
Date Posted: 02/Mar/2007 at 9:20am
They are there in hyderabad - a mid class property - not the best in class in its category but still doing ok due to hyderabad boom.


Posted By: kulman
Date Posted: 02/Mar/2007 at 9:54am
They seem to have quite a few hotels lined up for Sindhudurg District, I personally have no clue about this place. Does this district really have such a big potential ?
 
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Having travelled extensively in that region,  I can say that Tourism is booming like never before in Konkan (coastal Maharashtra). And Sindhudurg has couple of the best sea beaches. Govt is about to complete Coastal Highway project which is helping tourists a lot.
 
 
 
 
Disclosure: I love sea beaches & visit Konkan/Goa at least once a year.
 
 


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Life can only be understood backwards—but it must be lived forwards


Posted By: Mohan
Date Posted: 03/Mar/2007 at 10:08pm
Originally posted by kulman

They seem to have quite a few hotels lined up for Sindhudurg District, I personally have no clue about this place. Does this district really have such a big potential ?
 
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Having travelled extensively in that region,  I can say that Tourism is booming like never before in Konkan (coastal Maharashtra). And Sindhudurg has couple of the best sea beaches. Govt is about to complete Coastal Highway project which is helping tourists a lot.
  
Disclosure: I love sea beaches & visit Konkan/Goa at least once a year.
 
 
 
do you know the route of the coastal highway project ?
 
 


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Be fearful when others are greedy and be greedy when others are fearful.


Posted By: kulman
Date Posted: 04/Mar/2007 at 12:31pm
Coastal Highway is being built from Revas (Alibaug) to Reddy along the Konkan sealine.
 
You may find more details by Googling.
 


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Life can only be understood backwards—but it must be lived forwards


Posted By: Mohan
Date Posted: 04/Mar/2007 at 1:42am
Thats very interesting. there will be a lot of growth taking place along its route

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Be fearful when others are greedy and be greedy when others are fearful.


Posted By: Mr. V
Date Posted: 04/Mar/2007 at 2:24am
Thanks everyone for the information on Sindhudurg.

So, it looks like the future potential is very bright.


Posted By: kulman
Date Posted: 27/Oct/2007 at 9:24am
Mr. V
 
Are you tracking this one still?
 
  • The results appear too good http://www.bseindia.com/qresann/results.asp?scripcd=526668&scripname=Kamat%20Hotels%20India%20Ltd&type=55&quarter=SQ2007-2008 - http://www.bseindia.com/qresann/results.asp?scripcd=526668&scripname=Kamat%20Hotels%20India%20Ltd&type=55&quarter=SQ2007-2008
 
  • They have leased many restaurants at strategic locations (along the highways in Maharashtra & Gujarat) and upcoming/booming tourist spots.
 
  •  TTM EPS of Rs. 20.5. At CMP of Rs. 190 the PE < 10.
 
  • Announced acquisition upto 60% stake in equity of Concept Hospitality Ltd, a hospitality management consultancy Company, subject to approval of the Central Government.
 
 
Disclaimer: Don't own the stock. After Gujarati Thali, Udupi Vegetarian food is my favourite.
 
 
 


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Life can only be understood backwards—but it must be lived forwards


Posted By: Vivek Sukhani
Date Posted: 28/Oct/2007 at 12:26pm
Does this Hotel chain have a first mover advantage in that sindhudurg region? In that case, it makes it a great buy , both on the basis of financials as well as business wise. Although I am totally incompetent to talk on business model but wrt hotels, we all understand its business maintainability thats more crucial than financials. thats why an Advani hotels is trading at such levels and a leela is trading at such levels. The valuation gap is a bit too much to simply make a call on the basis of financials


Posted By: Mr. V
Date Posted: 28/Oct/2007 at 6:34am
Kulman,

I do own this stock. This quarter's results are good but the big gain in YoY profits was expected because a large section of its flagship property, the Orchid Hotel, was being refurbished last year.

I don't like the hotel industry much because of its Capex requirements ,cyclical nature and sky rocketing real estate prices having a negative impact on ROE but KHIL looks very compelling from a current valuation and future plans perspective.

I will put down the reasoning behind my investment decision in my next post.


Posted By: Mr. V
Date Posted: 28/Oct/2007 at 9:40am
The first thing that any prospective investor should be aware of is that Kamat Hotel derives 95% of its current revenues from its 2 properties in Mumbai, The Orchid Hotel (245 rooms) near the domestic airport and Lotus Suites(190 rooms) in Andheri near the Sahar International Airport. This exposes KHIL to a huge event risk but I feel the current valuations (Market Capt 250 crores) limits the downside risk.

Future Plans

1. KHIL plans to double its room capacity from 450+ to 1000+ by FY10. This would involve adding 100 rooms in The Orchid hotel(ARR Rs 8200 and Occupancy rate of 88%) and new properties in Nagpur, Raipur and Baddi. The company is clearly concentrating on emerging business hubs in Tier II and III cities and trying to establish its Lotus Suites, Orchid and VITS brand through both greenfield and brownfield projects. It must be noted that none of these cities have an existing big player like Taj, Oberoi etc.

2. KHIL also intends to manage 1000+ rooms by Fy10. It involves no Capex expenditure and the company usually charges 2-3% of revenues and 6-8% of EBITDA as fees which I believe goes straight to the bottom line.

3. Apart from the business segment, KHIL also intends to own/manage various 4-5 star heritage/tourist properties in Sindhudurg, Pune and Katra(Vaishnodevi). The Jadhav Gadhi fort in Pune is expected to start operations in Nov. It has a 42 room capacity and average room rents are supposed to be Rs 15,000.
Kulman,I believe you have been booked their for a couple of weeks, your good friend PKB dada is picking up the tab. Please, let me know about your experience and your take on its prospects.

Valuations
1. KHIL current market cap of 250 cr factors in its Mumbai properties (435 rooms) at a replacement cost of 57 lakhs per room which I feel is quite low given that its properties are at prime locations and green field projects have an establishment cost of 1 cr per room in Mumbai.

2. KHIL should be able to do revenues of about 210 cr by FY10 and net profit of 42 cr post expansion. I would add another 8 crores to the bottom line via the management fees for 1000+ rooms.

3. I don't have much idea about how the Restaurant business is progressing but according to the management KHIL intends to have 50 restaurants by FY10. My rough calculation on the conservative side would be 10 lakhs per restaurant to the bottomline.

Overall, KHIL has a decent probability of doing a net profit of Rs 60 cr on an expanded equity base of 17.3 cr which would mean an EPS of about Rs 34-35. If it were to trade at a PE ~ 20, the market price would be about Rs 700 and that would be ~ 4x from current levels.

Additional triggers:
Kamfotel chain with HPCL and the stake in Concept Hospitality which is a group company and manages quite a few hotels in India, South Africa & Ulan Bator!!!

Conclusion
Heads I make ~ 4x, tails I hardly lose anything (maybe opportunity cost).


Posted By: Vivek Sukhani
Date Posted: 28/Oct/2007 at 10:13am
Good Analysis. P/E of 20 is also justifiable. However, pi of 60 crores is something where my stress will be. If it earns such truck loads then it will be the tier-1 by financials.


Posted By: kulman
Date Posted: 29/Oct/2007 at 6:54pm
Heads I make ~ 4x, tails I hardly lose anything

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Interesting. Good thesis.

Soon I would be traveling on vacation & will make sure, wherever possible to have breakfast meals at Vithal Kamat's.



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Life can only be understood backwards—but it must be lived forwards


Posted By: shivkumar
Date Posted: 29/Oct/2007 at 11:15pm
The Aronde and Amboli areas of Sindhudurg have some of the most beautiful beaches in Western India. There is a proposal to build an airport here. Maharashtra's revenue minister Narayan Rane has been cultivating this place ever since he was chief minister ten years ago. He wants Sindhudurg to be a tourism zone.

Now that he is becoming more powerful in the vilasrao deshmukh government, Rane is aggressively pitching for an airport here. The airport proposal is giving sleepless nights to the politicians in Goa because charter operators fed up with Dabolim airport would easily switch over. Some politicians in Goa want to pre-empt this by having a new airport of their own at Mopa which borders Sindhudurg and Goa.

Either way Sindhudurg will be a booming tourism destination in the coming years. Just to let you know that the major hotel owners like Taj, Oberoi and the Timblos who own Cidade de Goa have purchased huge tracts of land here in the 1990s. So in a way, Kamat Hotels has a first mover advantage.

It however remains to be seen how they monetize the properties though.


Posted By: kulman
Date Posted: 30/Oct/2007 at 6:31pm
Yes you are absolutely right. Add to that some new Power Plants planned in nearby Ratnagiri District.
 
The Konkan coastline is buzzing with activities.
 
Whether & how Kamats are able to capture that growth potential in the bottomline remains to be seen.


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Life can only be understood backwards—but it must be lived forwards


Posted By: Mr. V
Date Posted: 02/Nov/2007 at 1:49am

Notes from the Analyst Conference call (available on IndiaEarnings)

 

KHIL’s Mumbai properties, Orchid & Lotus Suites will continue to be the major drivers in the short term (6-8 months). The Occupancy rates in both the properties have come down but ARRs have gone up significantly. The OR for Orchid is 77%, down from 88% in the corresponding quarter but ARR is up by 25% to 8,600. Similarly, the OR for Lotus Suites is 70%, down from 77% but ARR has improved from 3,500 to 7,500. The company expects higher ARRs in Q3 & Q4(season) and the Orchid hotel is already tarriffs of Rs 12,000 in Oct.

 

The heritage property in Jadhav Gadhi Fort (Pune) will be launched on Nov 20th and will be the first of its kind in Maharashtra . It has a capacity of 44 rooms and the company expects starting ARRs to be around 15k and Occupancy of 60%.  Its proximity to Mumbai will help it in targeting the premium wedding market, which is currently catered by the palaces in Rajasthan.

 

Expansion plans

The company operates on 3 models. Own, Lease & Manage.

Apart from the Mumbai properties, the company is focussing only on Tier II/III cities because of less competition & capex requirements and higher returns.

KHIL plans to add 100 more rooms in a phased manner to the Orchid hotel in Mumbai by FY10. The per room capex requirement will be much less because it will not incur any overhead costs (lobby, kitchen etc).

 

It has a 33% stake + management fees in 2 properties (200 + 200) coming up in Pune by Aug 08. The other stakeholders are Unity Infra and Maharashtra govt.

 

It is also setting up an Orchid and VITS(4 star business hotel) close to the Nagpur airport. The first property is going to be operational in 18 months and the 2nd one in 30 months.

 

Other VITS properties will be coming up in Raipur & Baddi over the next 3-4 years.

 

The company has acquired a 60% stake in a group company, Concept Hospitality. It currently manages 400 rooms in various hotels like Rados in Powai, Uppal’s Orchid in Delhi and Lagoona resort in Lonavala.

 

The management fees are typically about 4-8% of the revenues. KHIL currently manages 1000 rooms (including Concept) in various hotels and it will go up to 1500 rooms over the next 3-4 years. Some of the management properties that are going to become operational in the near future are Vaishnodevi (200 rooms by Nov end), Belgaum (60 rooms by Dec), Amboli (Jan/Feb), Aronda (Nov), Aurangabad (104 rooms by Mar ’08), Lotus Suites Baroda (100 rooms by Dec/Jan) and Nagpur (55 rooms by Q1FY09).

 

Restaurant business

Currently it is in a very nascent stage with about 20 odd VKSS restaurants operational. The company believes that the Food Retail story has a huge upside and expects it to be very lucrative in the long run. It plans to open 100 VKSS restaurants over the next 3 years. It is primarily concentrating on the highways in western India and the Nagpur-Raipur section. It has also tied up with ONGC & HPCL to open 200 odd fast food outlets.

 

Funding plans

KHIL had raised 80 cr in Feb through a FCCB issue. It has about  115 cr of debt on its books. The CAPEX requirements for the time being will be met through internal accruals, debt and the cash from the FCCB issue. The management stake in KHIL is about 75%.



Posted By: kulman
Date Posted: 18/Nov/2007 at 11:25pm
First hand feedback from my recent visits to couple of their resorts/restaurants is very encouraging.
 
While one needs to keep in mind the cyclical/seasonal nature of this business model, KHIL looks to be interesting. "Vithal Kamat" is being strategically promoted as a brand.
 
 
 
 


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Life can only be understood backwards—but it must be lived forwards


Posted By: Mr. V
Date Posted: 19/Nov/2007 at 10:12pm
Thanks for the feedback Kulman.
 
What do you think about the quality of food, prices and overall ambience from a cleanliness and hygienic point of view ?
 
Were these restaurants doing brisk business ?
 
The company plans to open 100 such restaurants over the next 3 years, incurring an expenditure of 75 crores.


Posted By: us121
Date Posted: 19/Nov/2007 at 10:23pm
i have stayed in Orchid number of times and in lotus once or twice.

orchid is excellent in all the aspects. location is prime, obviously being next to airport.

Lotu is reasonably ok.


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ABILITY will get u at d top. CHARACTER will retain u at d top


Posted By: kulman
Date Posted: 19/Nov/2007 at 10:27pm

Diwali vacation period is one of the peak tourism seasons hence the outlets were crowded. The food is reasonably priced considering acceptable cleanliness/hygiene standards.

Another noticeable strategy of KHIL seems to be taking over Mgmt Contract from local Govt Tourism Dept at excellent locations. 
 
In general, as said earlier, Indians are touring around like never before. There are traffic jams even at Toll Plazas!!
 
 
 


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Life can only be understood backwards—but it must be lived forwards


Posted By: basant
Date Posted: 19/Nov/2007 at 7:16am
So it was like Peter Lynch staying at La Quintas! Did you pull the curtains and get your toe into the shallow end of the pool?

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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in


Posted By: hkumar
Date Posted: 20/Nov/2007 at 4:56pm
Originally posted by us121

i have stayed in Orchid number of times and in lotus once or twice.

orchid is excellent in all the aspects. location is prime, obviously being next to airport.

Lotu is reasonably ok.
 
I do second.....I have found the Orchid Mumbai & Delhi very good and food is just excellent (esp their lunch buffet)


Posted By: valueman
Date Posted: 20/Nov/2007 at 5:27pm
Mr.V

Thanks for your sharing .Kamat Hotels is on my investment Radar and I am happy that you have shared a lot in helping me get a better view of Kamat Hotels .


Posted By: Mr. V
Date Posted: 20/Nov/2007 at 8:23pm

Its my pleasure.



Posted By: deveshkayal
Date Posted: 20/Nov/2007 at 8:54pm
Originally posted by Mr. V

The heritage property in Jadhav Gadhi Fort (Pune) will be launched on Nov 20th and will be the first of its kind in Maharashtra . It has a capacity of 44 rooms and the company expects starting ARRs to be around 15k and Occupancy of 60%.  Its proximity to Mumbai will help it in targeting the premium wedding market, which is currently catered by the palaces in Rajasthan.

 

 
So, competition for Umaid Bhavan finally ! Pune normally has a good climate when compared to Rajasthan but the feel you get in Rajasthan is just awesome.
 
Rel Cap bought 6% stake in Oriental Hotels. Any idea on this company ??


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"You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett


Posted By: Mr. V
Date Posted: 20/Nov/2007 at 9:09pm
Oriental hotels is part of the Taj group.
http://www.orienthot.co.in/ - http://www.orienthot.co.in/


Posted By: kulman
Date Posted: 25/Nov/2007 at 4:39pm

Hospitality group Kamat Hotels (KHIL) is working on a strategic plan to set up 50 hotel properties in five-star, four-star and fort segments by 2012 at an estimated investment of Rs 500 crore, a top company official said.

"As part of our expansion plans, we plan to open 41 VITS (4-star luxury brand) properties in the next five years. We will launch the VITS hospitality in Ahmedabad, Aurangabad, Baroda, Belgaum, Chinchwad, Hubli, Kolhapur, ... and 20 more locations in the next five years," KHIL Executive Chairman and Manging Director Vithal Kamat said.

Each VITS hotel would have 80-120 rooms, and would cost the chain about Rs 20 lakh per room, said Kamat.


Kamat Hotels also has plans to launch heritage hotels under the brand name 'Gadh' in December. It has acquired six fort properties from earstwhile Maharaja's to set up fort hotels in Maharashtra and Goa and has formed Gadh Hotels Pvt Ltd for the said purpose.

"We have internal accruals. But at the same time, today for all the VITS brand hotels we are receiving enquiries for partnerships. So, we will also be managing it and giving it on a franchise basis. This is a new opportunity where capex will be very low," Kamat said.

Source: http://economictimes.indiatimes.com/News_by_Industry/Kamat_Hotels_to_set_up_50_luxury_properties_by_FY12/articleshow/2569081.cms - http://economictimes.indiatimes.com/news_by_Industry/ - http://economictimes.indiatimes.com http://economictimes.indiatimes.com/News_by_Industry/Kamat_Hotels_to_set_up_50_luxury_properties_by_FY12/articleshow/2569081.cms - / news_by_Industry/
Kamat_Hotels_to_set_up_50_luxury_properties_by_FY12
/articleshow/2569081.cms

 
 


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Life can only be understood backwards—but it must be lived forwards


Posted By: Mr. V
Date Posted: 09/Dec/2007 at 8:20am
Originally posted by kulman

Originally posted by Mr. V

Kamat YatriNivas is different from Kamat Hotels (KHIL). http://www.kamatyatri.in/


<FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>Yes.

<FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>

<FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>By the way, Mr. V your KHIL is being noticed by Mr. Market. >50% rally in short span.




hmm... Looks like KHIL had a big run up over the last couple of days but delivery percentages are on the lower side: 25%.

Maybe punters are betting on some possible positive announcement from the company(KHIL).

Personally, I try not to get too excited about price movements and prefer to keep myself insulated from them.
I would rather concentrate on the business plans of the company but I must admit that the fact that the market has started noticing all three of my investments in Feb/Mar 2007 (Aegis, Shriram & Kamat) does put a smile on my face


Posted By: Mr. V
Date Posted: 18/Dec/2007 at 9:29pm
Both Orchid and Lotus Suites have been showing strong ARRs in the 2nd half of the year (that's what the online reservation site tells me).
 
ARRs for Orchid could be Rs 12k and Occupancy rate can be 84%
The same numbers for Lotus Suites can be 8k and 76%.
 
This would mean KHIL will post revenues of 92 cr in H2FY08.
NP margins = 25%
NP (FY08) = 34 cr
Fully Diluted EPS = Rs 20
 
ps: ARRs for both the hotels are on the conservative side and I haven't included any revenues from the other properties owned/managed by KHIL.
 


Posted By: Mr. V
Date Posted: 13/Feb/2008 at 1:39am
Q3 results were good.

YoY Revenues were up by 26% and Net Profit by 50%

Average room rents for both Orchid and VITS in mumbai were up by 15-20%.

Operating margins remain strong and the company should be able to do a net profit of Rs 35 crore in FY08 and that would translate to a fully diluted EPS of Rs 20.

The CMP of 190-200 is looking very attractive.


Posted By: kulman
Date Posted: 13/Feb/2008 at 7:13am

Few days ago I had snacks (Aaloo Vada, Sabudana Khichdi & Tea) at one of their new restaurant off NH4 highway just outside Pune. It's within HP petrol pump premises. They've already opened couple of such outlets in tie up with HP.

Overall a very satsfying experience. Burrrrp....
 


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Life can only be understood backwards—but it must be lived forwards


Posted By: Mr. V
Date Posted: 14/Mar/2008 at 12:10pm
- News report on tie up with HPCL

Hospitality group Kamat Hotels (India) Ltd has tied up with Hindustan Petroleum Corporation Ltd (HPCL) for retail space at the latter’s petrol pumps spanning across highways and cities for its new restaurant chain called Vithal Kamat vegetarian restaurant. “We have formed a joint venture with them. They will give us retail space at their petrol pumps,” said Vithal Kamat, current executive chairman and managing director, Kamat Hotels (India) Ltd.

Kamat group has already opened 22 such outlets at HPCL pumps and plans to open another 40 with HPCL. “In total, we plan to have 100 Vithal Kamat restaurants,” he added.

The group is also looking at taking its restaurant chain to malls. “We have been approached by people for tie-ups,” he said, adding that the group will look at all models including lease, franchisee, rent and management.

Kamat said that the group would also look at tying up with 1,000 square feet restaurants with location and footfall as the main parameters. VITS, the recently launched luxury business hotels chain by the group, will home Vithal Kamat restaurant. “All VITS will have the Vithal Kamat restaurant,” he said.

Kamat group is also looking at acquiring hotels. Asked if the group has identified any, Kamat said, “We don’t acquire anything and everything. We have been approached by at least 40 hoteliers.” He added that these hotels will be 80-120 rooms four-star luxury hotels and ones that fit in our existing portfolio.


Posted By: equity analyst
Date Posted: 14/Mar/2008 at 12:02pm
Ashish chaug has recommended kamat in his hidden gems.  

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"Markets are the places where two types of people meet up in the morning: those with experience and those with money. Towards the end of the day, they exchange their assets and go home."


Posted By: WarrenJr
Date Posted: 14/Mar/2008 at 1:48am
You may be onto something here, today CITIgroup bought 2.48 lakhs shares of Kamat at 178


Posted By: Mr. V
Date Posted: 15/Mar/2008 at 4:56pm
Don't know whether I am onto something or not but I won't pay too much heed to an insolvent bank selling its stake to another bank that's probably teetering on the verge of insolvency.

Who knows, maybe 2 months down the line CITI would be making a desperate sell to LEH.


Posted By: Mohan
Date Posted: 15/Mar/2008 at 6:30am
Kamat Hotels management is capable. It should grow well with the industry.

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Be fearful when others are greedy and be greedy when others are fearful.


Posted By: stocktin
Date Posted: 08/Apr/2008 at 9:40pm
I think there are two Kamat chains:

(a) Kamat Lingayat who have a few hotels in Hyderabad, but these are mainly budget hotels for stay - I once stayed there when I could not get a room close to the airport. The owner belongs to a small village in South Kanara Dist. near Shirali. The hotel was clean and a good budget, but I do not see it going places. they have since added more, but I do not have details.

(b) Vithal Kamat is in our typical Udipi products and has a chain of restaurants dotted along Karnataka and now mahrashtra - which Kulam refers to and gives details.
PS: One friend jocularly calls it: "KHA MAT" But they are good.

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taggy


Posted By: shivkumar
Date Posted: 08/Apr/2008 at 10:12pm
Kamats are Saraswat Brahmins from the Konkan region who trace their origins to Goa before they were dispersed by the Portuguese.

Most of them migrated to Karnataka or rather Udupi via Karwar then a Portuguese possession. For some reason, the Kamats who migrated embraced vegetarianism probably because they had to serve the rich Brahmins though the Saraswats of Goa are neither vegetarians nor do they consider it worth their dignity to run restaurants.

So the first Udupi restaurants that moved out of Udupi were in Mumbai and Vithal Kamat's father was one of the pioneers. Legend has it that the elder Kamat worked as a waiter at the Udupi restaurant in Matunga in Central Mumbai before he set up the first Udupi restaurant opposite Churchgate railway station with his wife's jewellery as capital.

The old man then got pally with Ramnath Goenka who was building the Express building outside Churchgate. The hugely successful successful Satkar still exists but is run by other branches of Vithal Kamat's family.

So those who are aware of Vithal Kamat's restaurants know the man is deeply committed to his business. Of course, he knows how to milk every ounce of publicity possible while he schmoozes with the politicos of Maharashtra.

But then the guy is building a deep moat around his business!


Posted By: stocktin
Date Posted: 08/Apr/2008 at 1:18am
Originally posted by shivkumar

Kamats are Saraswat Brahmins from the Konkan region who trace their origins to Goa before they were dispersed by the Portuguese.Most of them migrated to Karnataka or rather Udupi via Karwar then a Portuguese possession. For some reason, the Kamats who migrated embraced vegetarianism probably because they had to serve the rich Brahmins though the Saraswats of Goa are neither vegetarians nor do they consider it worth their dignity to run restaurants.


Sir, I am from the Saraswat Brahmin community and would like to add:
(a) The Saraswat community is all along the coastline from the Southern tip of Gujerat to the Northern tip of Kerala. There are 3 to 6 distinct sects of Saraswat brahmins and only some show an inclination to do business and in particular restaurant business e.g. Pais and Kamats
(b) Konkani as such is a dialect and not a language as it is influenced by geographical region and so are the food habits of all Konkani speaking people. Thus people from Maharashtra speak Malwani, the Konkani from Goa is distinct from that in nothern and southern Canara districts in Karnataka also differs. The food menus are very distinct. My grandmother came from Kasargod in Kerala of today!
(c) All Saraswat Brahmins are originally vegetarian though some may have adopted to local food like fish, perhaps during difficlult times.
(d) But I have nothing to add regarding Vithal Kamat or the other Kamat I spoke about.
Disclaimer: Anything I have said about veg habits should not influence members decision to buy Kamat's shares!

Does anyone have data on how many units they have opened so far in the past few years and their plans?

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taggy


Posted By: stocktin
Date Posted: 08/Apr/2008 at 1:56am
Just visted these links:

http://www.thehindubusinessline.com/2006/06/07/stories/2006061702800500.htm

http://www.khil.com/future-plan.htm
Project Profile Of Kamat Hotels (India) Ltd

Expansion Of "The Orchid", 5 Star ,Mumbai

The company has acquired a plot adjoining the Orchid and has signed an MOU with the Plaza hotels to build 130 more rooms. The total room inventory of the combined property will increase to 375 rooms, which will make The Orchid one of the biggest hotels of the city in terms of rooms.

Orchid Heritage Jadhav Gadhi, At Pune

With the Orchid Heritage, the company is entering into the business of developing premium, luxury hotel resorts. The palace hotel, which will be functional by the end of the year, will have 45 rooms. Besides, another attraction will be 20 luxury tents. The total property is spread in 17 acres with the actual palace admeasuring about 2 acres. With mountains and lakes surrounding the palace and a historical background to top it all, the palace will be a huge draw for foreign travelers.

The Orchid, 5 star, Raipur Chatissgarh

Another 5 star property to be developed by the KHIL under the Orchid brand would be in the mineral rich state of Chatissgarh at Raipur. This would be the first green hotel in the state. A 120 room hotel including suites and deluxe rooms has been planned.

Orchid Resort 5 Star Khawne In Sindhudurg District ,Maharashtra .

The uniqueness of the resort will be a private beach on one side and a backwater lagoon on the other. This picturesque site is located at Khavne, just one hour from Dabolim Airport.

This will be a resort 5 Star hotel catering to those who are looking for a premium experience in secluded privacy few places near Goa can offer. This property would be ready by 2008.

Lotus Suites Four Star At Nagpur

A hundred room four star hotel under the Lotus Suites brand will be developed by the company. Situated at 15 minutes drive from the Nagpur airport, this property will be ready by the year 2007.

This would be a mixed development construction where in there is a 4 Star hotel along with what will be Nagpur's premier Catering Institute .

Lotus Suites, 4 star, Amboli ,Sindhudurg District, Maharashtra Location: 2 Acres of land in Amboli, Dist Sindhudurga in Konkan Region Maharashtra.

It has the distinct locational advantage as it is situated at such an enviable point receiving the highest rain fall in India next only to that of Cherapunji. Nature has blessed this location with all its beauties on the earth like beautiful perennial greenery, deep valleys which is feast to eyes, cool foggy atmosphere having potential to draw flock of tourists all the time of the year. The added attractions are Biotech Park, Paragliding besides trekking.

Lotus Suites At Aronde , Sindhudurg District Maharashtra

Located on the banks of a river that cuts Maharashtra & Goa, this resort has features unique to this site only. The company plans to develop a 24 room boutique property on 4 acres of land. The hotel should be operational by the year end.

Located next to a private jetty and a ship building yard, guest will see in front of them how boats are made, and set to sail. Also a part of the hotel would be on an Island in the middle of the river created naturally. Guests will be able to stay in houseboats owning to the calm water of this unspoilt river.

Lotus Suites At Baddi , Himachal Pradesh

Located in the heart of Himachal Pradesh's Pharmaceutical SEZ is the lotus suites , Baddi. Ths will be a 100 room business hotel on land aquired by the company.

Baddi has a distinct advantage as it is notified as Tax Holiday territory with almost all Tax Holidays such as Income Tax , Sales Tax, Excise Duty benefits for ten years as well industry set up there are entitled for subsidy and as such many Pharma companies have set up their units at Baddi .

The Lotus Suites 4 Star , Raipur Chatissgarh

The company has acquired land to build a 4 star property in Raipur next to the airport. This hotel will cater to ever growing Raipur airport along with the mid segment tourists in the various mining and power Industries . This will be a 100 room property.

Kamfotel , Nashik Maharastra

The KHIL has entered into a management contract for 35 years for management of 32 rooms of Hotel Siddharth at Nashik.

Since it is more profitable to redevelop the property by demolishing the existing structure, we propose to make a three star Kamfotel with 145 rooms.

The Restaurant Division Vithal Kamat Veg. Restaurant .

The Kamats restaurant once synonymous with `Vithal Kamat ` will once again see itself spreading all over the country. The company has embarked upon to achieve a target of 75 restaurant under this brand in the next 5 years. Currently there are 4 restaurants under this brand. There will be Kamats fast food restaurant serving South Indian specialized and other cusines.

ONGC & KHIL Tie Up .

The restaurant expansion plans also include approximately 30 restaurants spread across India and get integrated in its overall restaurant division.

Khil will operate the traveler-related facilities like motels and restaurants at selected ONGC & MRPL Retail Petrol outlets. It will also conduct architectural services for the Retail Outlets.

RETAIL OUTLET SERVICE PROVIDER AGREEMENT WITH OIL AND NATURAL GAS CORPORATION LTD.(ONGC) AND MANGALORE REFINERY & PETROCHEMICALS LIMITED (MRPL) FOR EXTENDING AND PERFORMING AND CARRYING OUT VARIOUS SERVICES LIKE:

ONGC is one of the most valuable companies on the bourses having highest market Capitalization in India and has the distinction of being Asia's best Oil and Gas Company. It has scripted Indian Hydrocarbon saga by discovering six out of seven producing basins of India and contributes 83% of India's domestic oil production. It nurtures the vision of becoming an Indian Integrated Energy Multinational (PSU) and target a turnover of 50 billion US$ in 5 years. ONGC's wholly owned subsidiary- ONGC Videsh is the biggest Indian Multinational with 24 Assets in 13 countries.

MRPL, a subsidiary of ONGC, is a most modern refinery and first to produce environment friendly Euro-III products in India. It has the distinction of highest capacity utilization, efficiency in operations and exports among the PSU refineries in the country.

ONGC's retail outlets under the OVaL brand and MRPL outlets under HiQ brand will be Company owned and managed to instill the confidence for quality of product and value for money. The brands seek to provide a hassle free service to the customers and a unique experience through their products and services.

The retail Outlets will offer a bouquet of services and customer conveniences to the different segments of travelers. A Highway traveler can look forward to a neat and clean resting place, hygienic public utilities, safe parking, food courts to suit the palate, communication facilities, ATMs and select items of daily chores. A city traveler can experience a quick fill, fast food counter and site-specific need based travel related facilities.

a) Travel Related Facilities Operator Services for the Motel with lodging facility, food and beverage restaurant and the convenience store.

b) Retail Outlet Operation Services like Forecourt operations, janitorial, security etc.

c) Architectural Consultant Services, for developing lay-out plans/ construction drawings engineering, detailing for construction of the Retail outlets and other allied traveler related facilities (TRF) like Motel with lodging facility, food and beverage restaurant, Convenience Stores, ATM, Tyre shop, phone and internet facility offering all traveler related conveniences to its customers from specifically earmarked space therein (hereinafter called "TRF Area"). The Motel with lodging services is to be provided by either

upgradation/demolition/re-erection of existing facilities or by new construction of the facilities on site-specific basis.

Initially the above services will be extended in respect of 50 (Fifty) 'Company owned Company operated' "(COCO)" Outlets of ONGC and MRPL.

Kamfotels (Kamat Comfort Hotels)

KHIL plans to open a chain of 50 Kamfotel's in various cities in India. Work has already started at a property in Nashik, Maharashtra and many other locations.

Kamfotel will have about 80 -100 rooms, with a medium sized meeting and conference room and will be located mainly near a religious place or an industrial town, which has a large moving population.

Each Kamfotel will follow a franchisee model, with KHIL providing the know-how to build and manage the hotel.

Vithal Kamat Super Snacks (VKSS)

These are stand-alone outlets based on the idea of serving good quality hygienic food at affordable prices to travellers moving from one city to another.

VKSS will be expanding in numerous cities in the country, at least 50 such outlets will come up in the next five years. VKSS will also be based on the franchisee model.

The KHIL site also gives financial reports.

Will be worth buying shares if they give travel and food vouchers at discount!



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taggy


Posted By: ashwin.adsouza
Date Posted: 08/Apr/2008 at 6:06am
(b) Konkani as such is a dialect and not a language
Just to clarify the above line. Konkani is a language - Konkani was included in the Eight Schedule of the Constitution of India, as per the Seventy-First Amendment on 31st August 1992, adding it to the list of National Languages. Please refer: http://en.wikipedia.org/wiki/Konkani_language - http://en.wikipedia.org/wiki/Konkani_language .


Posted By: shivkumar
Date Posted: 08/Apr/2008 at 10:19am
the aronde property between sindhudurg and goa got inaugurated this week, according to a company statement.


Posted By: kulman
Date Posted: 08/Apr/2008 at 11:24am
Great! If that is on the banks of Terekhol river, the location is quite picturesque.

I would love to have a look at Aronde resort in near future..
.. if time, money & markets permit of course.


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Life can only be understood backwards—but it must be lived forwards


Posted By: shivkumar
Date Posted: 08/Apr/2008 at 11:43am
Originally posted by ashwin.adsouza

(b) Konkani as such is a dialect and not a language
Just to clarify the above line. Konkani is a language - Konkani was included in the Eight Schedule of the Constitution of India, as per the Seventy-First Amendment on 31st August 1992, adding it to the list of National Languages. Please refer: http://en.wikipedia.org/wiki/Konkani_language -


Posted By: kulman
Date Posted: 08/Apr/2008 at 11:50am
Originally posted by shivkumar

Very unfortunately all the sajjans on this forum won't allow both parties to sit back with a glass of urrack to kiss and make up especially now that the heat is on......


LOL ha ha !!

It's hurrak season in Goa now!

Mix it with Limca....have rawa-fried Surmai with it. Wow!!!








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Life can only be understood backwards—but it must be lived forwards


Posted By: Mohan
Date Posted: 09/Apr/2008 at 6:35pm
Is Gajalee  in Parle East owned by this group too  ?

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Be fearful when others are greedy and be greedy when others are fearful.


Posted By: ashwin.adsouza
Date Posted: 09/Apr/2008 at 7:13pm
Originally posted by shivkumar


Now if some Marathi protagonist jumps up to ridicule Konkani and a ding dong battle begins re: lingo of amchem goem then I am gonna scream!!! Very unfortunately all the sajjans on this forum won't allow both parties to sit back with a glass of urrack to kiss and make up especially now that the heat is on......
 
Well clarifying a wrong premise should be encouraged, I would say. And I also agree that all the sajjans would understand the value of right facts no matter it might be a financial or someother sterotype minded fact. 
 
Back to the Kamat hotel discussion, Does anyone have comparisions of the company with Viceroy? Both look to be good companies but whose prospects might be better. I would like to buy just one from the pack, but unable to make a final decision on this.


Posted By: kulman
Date Posted: 09/Apr/2008 at 8:49pm

Lotus Resorts, the waterfront resort chain from Kamat Hotels India Limited (KHIL), has announced the http://www.travelbizmonitor.com/ArticleDetails.aspx?aid=2581&sid=36&sname=Top%20Stories - opening of its new property at Aronda, near Goa.

The resort is located on the backwaters of Satarda river at Kiranpani Aronda in north Goa, Lotus backwater Resort - Aronda claims to offer a luxurious stay in natural surroundings. 

The Lotus Resort at Aronda incorporates European and Goan style elements. The cottages are made of matured local wood and old Hubli teakwood. The Heritage room features an open-to–the–sky bathroom*.



* interesting! Uparwaale se kya chhupa hain?








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Life can only be understood backwards—but it must be lived forwards


Posted By: stocktin
Date Posted: 09/Apr/2008 at 10:42pm
Originally posted by shivkumar


Originally posted by ashwin.adsouza

(b) Konkani as such is a dialect and not a language


Just to clarify the above line. Konkani is a language - Konkani was included in the Eight Schedule of the Constitution of India, as per the Seventy-First Amendment on 31st August 1992, adding it to the list of National Languages. Please refer: http://en.wikipedia.org/wiki/Konkani_language - [COLOR="#800080 - http://en.wikipedia.org/wiki/Konkani_language[/COLOR - .
Now if some Marathi protagonist jumps up to ridicule Konkani and a ding dong battle begins re: lingo of amchem goem then I am gonna scream!!! Very unfortunately all the sajjans on this forum won't allow both parties to sit back with a glass of urrack to kiss and make up especially now that the heat is on......


Please visit the link from Wikipedia you have given above and I quote this piece for Konkani verbatim.(Please also see the definition of Dialect from same source):

"Konkani does not have a unique script. Scripts of the other regional languages where its speakers inhabit are used; although Devanagiri has been mandated as the official script.

Konkani is the official language in the state of Goa and is included in the list of National Languages of India."

Dialect based on linguistic definition becomes a language only when it has a UNIQUE (Single)script which Konkani lacks because it geographicaly and politically goes across three or more states with at least two distinct scripts. You may have any number of languages based on official/constitutional recognition/definition but this is not the science of language or "Lingustics". The constitution keeps increasing languages and states every few years.(We have about 20 nationally recognised languages and 500 dialects as per last official count, I am sure this ratio can be reversed in a century or so! For example they (all 500), can become languages by definition if they all accept Devanagri as their written script - overnight!).

A good example is Malaysia and Indonesia - they did not have written script. They first adopted Arabic and later the Roman script and have become languages. But development of language has social dynamics which took centuries ealier to settle a language, but made much faster today by trans-migration and better transportation. Our states were made on basis of language, but we still have regional influences within states(read languages and dialects) after 60 years of independence. But things are better than the North-South clashes in the 1960s.

The intention was not to ridicule anyone and stray from the alluring news on Kamat Hotels. This is just a clarification. I look forward to the urrack/arrack/sorro!



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taggy


Posted By: Mr. V
Date Posted: 09/Apr/2008 at 1:14am
Originally posted by ashwin.adsouza

Back to the Kamat hotel discussion, Does anyone have comparisions of the company with Viceroy? Both look to be good companies but whose prospects might be better. I would like to buy just one from the pack, but unable to make a final decision on this.
 
I haven't looked at Viceroy Hotel in detail but I think the business strategy of KHIL would differ primarily in the following ways.
 
1. KHIL is primarily concentrating on Tier II and other smaller cities/towns.
2. Intends to follow a low capex strategy by going in for management of hotels and branding.
3. Chain of restaurants along major highways (again low capex).
 
Valuations of KHIL are also considerably less. It should do Fully diluted EPS of Rs 19-20 in FY08.


Posted By: ashwin.adsouza
Date Posted: 09/Apr/2008 at 5:29am
Originally posted by stocktin

 
I look forward to the urrack/arrack/sorro!
 
Thanks. But, SORRO No...No..... We can settle for lassi though Smile
 
Originally posted by Mr. V

 
I haven't looked at Viceroy Hotel in detail but I think the business strategy of KHIL would differ primarily in the following ways.
 
1. KHIL is primarily concentrating on Tier II and other smaller cities/towns.
2. Intends to follow a low capex strategy by going in for management of hotels and branding.
3. Chain of restaurants along major highways (again low capex).
 
Valuations of KHIL are also considerably less. It should do Fully diluted EPS of Rs 19-20 in FY08.
 
Ok. Got it.
 
I was studying Indian Hotels, and it also seems to be focussing on the 1st and 2nd ways mentioned above.
 


Posted By: stocktin
Date Posted: 10/Apr/2008 at 6:55pm
Originally posted by ashwin.adsouza

Originally posted by stocktin

  I look forward to the urrack/arrack/sorro!

 

Thanks. But, SORRO No...No..... We can settle for lassi
 


NO Sorro-w. We will settle for a Patiala tall glass of lassi sometime. Thanks for the invitation.

Do you regularly follow the Hotel industry for sometime now?

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taggy


Posted By: ashwin.adsouza
Date Posted: 10/Apr/2008 at 7:27pm
Originally posted by stocktin

Do you regularly follow the Hotel industry for sometime now?
 
Well I see a big opportunity in the hotel industry in India. I am just drawing a big parallel to the US here. Different reasons:
1) Increasing infrastructure, and affulence will lead to a multifold increase in internal tourism. Budget hotels like Ginger will be in a good position to capitalize on this.
2) Increasing business has a direct impact on Hotels, people moving around need place to stay. Motels in the US have very high margins and involve little capex.
3) Hospitality industry I think will be more than just hotel rooms. Companies can offer a lot of allied services.
 
It is very much comparable to the Logistics industry (that depends heavily on business/GDP growth), but has a relatively less direct affect of fuel prices.
 
This is a sector that I am increasing my exposure, and intend to increase it to atleast 30% of portfolio.


Posted By: shivkumar
Date Posted: 10/Apr/2008 at 12:39pm
Kamat has several hotels that will go on stream in the coming months. Moreover they are taking to managing existing hotels. I am told the guys from Karnataka - the Udupiwallas, Shettys, etc are quite good because they have access to plenty of manpower.

They simply promote some guy from their own group and transplant them at the new place. So there is some amount of standarization that way.

For instance, the Chinese food at all the Shetty places taste alike.....


Posted By: shivkumar
Date Posted: 23/Apr/2008 at 3:39pm
The scion of Kamat Hotels has http://www.expresstravelworld.com/200804/travellife01.shtml - plans to expand in Maharashtra and Gujarat. Considering that these are the two states that are seeing a boom in business, it seems to be a great idea.

"Our primary target with 'VITS' is to foray into the much untapped regions of Maharashtra, Karnataka and Gujarat. In Maharashtra alone, we are aiming to develop 36 properties in the next five years," informs Kamat.

The group launched its first 'VITS' property in Mumbai (in Andheri) by upgrading its already existing property 'Lotus Suits'. It recently opened another 'VITS' in Belgaum under the watchful eyes of Kamat junior. Moreover, it has zeroed in on Kolhapur, Nagpur, Nashik, Navi Mumbai, Pune, Solapur, Surat, Thane and Aurangabad and Chinchwar. Besides these cities in Maharashtra, it is also looking at cities in Gujarat (Baroda, Ahmedabad and Surat), Karnataka (Hubli) and South India. "We are looking for fresh acquisitions to market VITS in other parts of the country now," he adds. The group, according to Kamat, is looking at an investment of Rs 500 crore in the next four years to develop its 'VITS' brand of hotels."




Posted By: Mr. V
Date Posted: 03/Jun/2008 at 11:44pm

Kamat Hotel's Q4 results were a surprise (on the -ve side).

While Q4 Revenues were stable (QoQ) at 44.3 crores, both Operating profits and net profits were sharply lower at 19.25 cr (Q3 was 22.88 cr) and 5.18 cr (Q3 was 10.78).
 
Depreciation was also higher by 1.5 cr
 
The Notes to results mentions the following 2 points :
 
6. a) Extra-ordinary items for the year represent Luxury tax assessment dues of Rs 17.161 million for the period from May 2004 to March 2005 paid on disposal of Luxury Tax appeal vide appallate order dated December 12, 2007.

b) Prior Periods expenses include direct expenses of Rs 75.304 million incurred in earlier years for marketing timeshare membership, which have been charged to revenue during the period net of equivalent amount transferred from advance timeshare membership fees received in earlier years as per modified method of accounting time share income as advised.

 
6(a) I believe explains the higher effective tax rate of 50%
 
I am not too sure by how much 6(b) impacts the bottomline.
 
Any estimates/conclusions ?
 


Posted By: stocktin
Date Posted: 03/Jun/2008 at 2:29am
Originally posted by Mr. V

Kamat Hotel's Q4 results were a surprise (on the -ve side).


While Q4 Revenues were stable (QoQ) at 44.3 crores, both Operating profits and net profits were sharply lower at 19.25 cr (Q3 was 22.88 cr) and 5.18 cr (Q3 was 10.78).

 

Depreciation was also higher by 1.5 cr

 

The Notes to results mentions the following 2 points :

 

6. a) Extra-ordinary items for the year represent Luxury tax assessment dues of Rs 17.161 million for the period from May 2004 to March 2005 paid on disposal of Luxury Tax appeal vide appallate order dated December 12, 2007.b) Prior Periods expenses include direct expenses of Rs 75.304 million incurred in earlier years for marketing timeshare membership, which have been charged to revenue during the period net of equivalent amount transferred from advance timeshare membership fees received in earlier years as per modified method of accounting time share income as advised.

 

6(a) I believe explains the higher effective tax rate of 50%

 

I am not too sure by how much 6(b) impacts the bottomline.

 

Any estimates/conclusions ?

 


They also have an additional Rs 5Cr. expense this quarter. I think that makes the difference.

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taggy


Posted By: ashokpatil
Date Posted: 29/Oct/2008 at 5:57pm

kamat hotels is good commpany. I am holding it from long time. But only problem is that promoters Vthal kamat and sons hold their own familly resturents under own familly companies here in india and in usa  and canada. If we see the annual reports Mr vithal kamat andhis sons are directors of other clubs and familly resturent  business.SO it is confusing which resturents are owned by Kamat hotel as company and which is owned by mr vithal kamat familly.

             In poona Mr vithal kamat started few veg resturents by named Sol kadhi about which no mention is made about annual reports or company statements.So it is confusing situation.

                                                                   ashokpatil


Posted By: ashokpatil
Date Posted: 29/Aug/2009 at 10:20am
 
 Kamat hotels published thier annual report profits are declining. They own     nearlly 60  resturents in cities and on highways. There is no mention about
restaurent division in annual report. All information is about hotel division.
                           Management have failed to see importance of resturents.Its a highly profitable business, where return on capital is high. But big hotels require huge capital so huge loans and low return on capital. Hotel business is  like airline business where huge capital is required to buy planes,and to run them. The management of kamat hotels should have laid more emphasies on restaurent business, which would have improved profitability.



Posted By: shivkumar
Date Posted: 02/Mar/2010 at 6:00pm
Hotel business is looking good again and the next few quarterly results will reflect the benefits of the upswing in the economy. ARRs are improving and the company's results last quarter were much better. Benefits of expansion will also kick in the coming months.


Posted By: ashokpatil
Date Posted: 13/May/2010 at 9:29pm
 
 kamat hotel stock rose 55% in april 2010 on back of FII investment its a  good company in hotel and resturent sector


Posted By: basant
Date Posted: 13/May/2010 at 10:14pm
Is it good after the rise or was good before it. Somehow Hotels is intensively capital intensive and almost all gains accrue from pricing.

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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in


Posted By: shivkumar
Date Posted: 13/May/2010 at 1:03am
Agree with Basant on hotels being capital intensive. But Kamat Hotels depends more on managing hotels by third parties on contract. The fee income is more stable. But hotel industry as such is facing plenty of headwinds due to over capacity.

Kamat Hotel management has indicated that ARRs may not increase all that much over the next few quarters though utilization of rooms have increased and remain at around 80 per cent plus levels.

From the look of it revenue growth seems to be capped in the foreseeable future.

 


Posted By: vivekbhauka
Date Posted: 13/May/2010 at 9:15am
already bought at 30-38 levels.
and thinking og selling half to make other shares virtually free.

rather than going much into analysis arr research etc etc ...its simple o buy stocks in bear markets and hold for good times to sell.

research etc etc should not be made in good times because u will end buying a stock high.this is my 18-20 yrs experience.in bull market fair markets--its just about getting 10-20% here there because over there u can get 1-=25% returns per year.but its nt worth taking that risk for 15-20%.
network 18 ccps in bse listed at 100,is giving risk free at 17-18% so why.

im waiting for mkts to correct 20%,large caps 30-40%.

hence im selling puts of 4000-4400 between.for next 3 months.instead to buying much.although i have my long term investments.that is different story.


Posted By: vivekbhauka
Date Posted: 13/May/2010 at 9:33am
u dont need to be a mastermind to earn money in stocks.
i have know people inactive and just bought 10000 shates of tisco at 150 and forgot.he never sell.may be he will buy if comes to again below 225.he has never dealt in shares whole life and no idea of eps book value roi etc etc.
he just lives in jamshedpur,where tisco is.and he knows the real worth of tisco as it owns half the city.u cant replace that city.probably best 10 cities of india.

the message is clear.u need not be a brain applier ....but buy basics in bear markets.now the main thng is to understand what phase markets are.
u earn 10-20% in good markets of ur total fund ..but that can continue as lonh bull market good market.but after 3-5 yrs u will be stuck.
but buying in bear market gives returns of above 30-40% ...and ur not stuck,


Posted By: self research
Date Posted: 13/May/2010 at 10:47am
very good posting this is real investing otherwise u book profit in bull mkt and buy another share at higher price mean u have not book profit ever.
and u buy less worthy company then u sell in bull mkt.
in reply to-
 
Message
Topic: Kamat Hotels
Posted: Today at 9:33am By vivekbhauka
u dont need to be a mastermind to earn money in stocks.
i have know people inactive and just bought 10000 shates of tisco at 150 and forgot.he never sell.may be he will buy if comes to again below 225.he has never dealt in shares whole life and no idea of eps book value roi etc etc.
he just lives in jamshedpur,where tisco is.and he knows the real worth of tisco as it owns half the city.u cant replace that city.probably best 10 cities of india.

the message is clear.u need not be a brain applier ....but buy basics in bear markets.now the main thng is to understand what phase markets are.
u earn 10-20% in good markets of ur total fund ..but that can continue as lonh bull market good market.but after 3-5 yrs u will be stuck.
but buying in bear market gives returns of above 30-40% ...and ur not stuck,


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- DONOT FOLLOW ANY BIG MAN THEY HAVE VERY LESS HEART.THEY R HEARTLESS MAN -


Posted By: ashokpatil
Date Posted: 04/Jun/2010 at 4:27pm
    basantji you are right hotel industry is capital intensive and return on capital is low. but kamat hotels are also in resturent business. they have about 100 resturents on highways under banner vihal kamat. if you are in bombay try thier food in balwas, satkar, sanman etc rsturents.Resturent business seem to have highgrowth in india, and the margins are high. kamat hotel was good and is good. i purchasedat 12 ,six to 7 years back.vithal kamat familly are one of the oldest hottelier familly in bombay.they have thier own resturents also    


Posted By: shivkumar
Date Posted: 04/Jun/2010 at 4:54pm
restaurants account for a small portion of the revenues. the hotel near Mumbai airport is still the biggest earner.

Exited  Kamat hotels fully after I realized that tariffs remained steady to increase room occupancies.

Now the number of hotels in Mumbai are increasing putting pressure on ARRs and the company is selling land to retire debt.

One will have to look at a major down cycle to accumulate this stock, but there are other plays that are on the upward curve - power and road stories.



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