Industry Profile: The Indian tourism and hospitality industry has emerged as one of the critical drivers of growth in the services sector in India. Tourism in India has significant potential considering the rich cultural and historical heritage, variety in ecology, terrains, and places of natural beauty spread across the country. Tourism is also a potentially large employment generator besides being a significant source of foreign exchange for the country. From January-July 2018, FEEs from tourism increased 12.1 percent year on year to US$ 17.09 billion.
India is the most digitally advanced traveler nation in terms of digital tools being used for planning, booking, and experiencing a journey. India’s rising middle class and increasing disposable incomes have continued to support the growth of domestic and outbound tourism. Foreign Tourist Arrivals (FTAs) increased to 5.97 million in January-July 2018, achieving a growth rate of 7.3 percent year on year. India’s travel & tourism sector accounted for 8 percent of the total employment opportunities generated in the country in 2017, employing around 41.6 million people during the same year. The number is expected to rise by 2 percent per annum to 52.3 million jobs by 2028.
International hotel chains are increasing their presence in the country, as they will account for around 47 percent share in the Tourism & Hospitality sector of India by 2020 & 50 percent by 2022
Company profile: The Indian Hotels Company Limited was founded in 1899 and is based in Mumbai, India. The Indian Hotels Company Limited and its subsidiaries own, operate, and manage hotels, palaces, and resorts in India and internationally. The company operates hotels under Taj, Ginger, Vivanta, and The Gateway. It also works with spas under the Jiva brand name, as well as salons and boutiques. The company operates approximately 165 hotels with 20,000 rooms. The company also engages in food processing and investing activities. In addition, it operates luxury residences, wildlife lodges, and spas.
The company runs the hotels under various brands, such as ‘Taj,’ ‘Taj Residency,’ ‘VIVANTA by Taj,’ ‘Gateway,’ and ‘Ginger’ hotels.
As of 21 December 2018, the company IHCL operates 170 hotels, including 25 under development globally across four continents, 12 countries, and over 80 locations.
Shareholding Pattern: BSE Filing
Financials and ratios: [table id=213 /]
Future prospectus: This company is in good shape but unable to perform. The reasons could be many but what I understood is having heavy debt and excessive spending are some. a simple analysis tells that company while writing, this company is showing signs of a turnaround and reducing its debt. Overall, if kept watch on quarterly results, this is one company to hold for the long term.
