LTP02 Asian Hotels North

NSE: ASIANHOTNR
BSE: 500023

Asian Hotels North has come out with excellant number for 2010-11

The net profit for the year was Rs 34.50 crore over a total income  Rs 305.44 crore
with an Operating profit of Rs 107.71 crore

On the paid up capital of 1.945 crore share of Rs 10 each ie., Rs 19.45 crore
the EPS was Rs 22.98 and the book value of the share was Rs 397
The current market  price is Rs 202 and the share is trading at a
PE of 8.74 x and P/ BV of 0.51x against the Industrial PE of 33x and P/BV of 1.15x

Delhi-based Asian Hotels (North) owns a premier five-star hotel in the Capital. The company plans to expand in the apartment space after it got split into three different entities earlier this year.
Asian Hotels (North) is the parent entity of the erstwhile Asian Hotels, which was demerged into three independent companies,
Asian Hotels (North),
Asian Hotels (East) and
Asian Hotels (West) earlier this year.
Jatia family-owned Asian Hotels (North) controls the flagship property Hyatt Regency, New Delhi one of the largest five-star properties in the country with nearly 517 rooms and suites. http://delhi.regency.hyatt.com/hyatt/hotels/index.jsp?  It is located within 20-25 kms of city centre and airport . The location of the hotels command the most lucrative operating margins in the industry and is part of Hyatt group which owns operates a portfolio consisted of 451 properties all around the world. Moreover, being present in the NCR region, it provides an edge to the company over its immediate peers. Delhi has a strategic advantage of being a hub of diplomatic, cultural and business activities. This ensures consistent buoyancy in business and leisure travel to the city.

Delhi Expansion
----------------
The company has received allotment order for development of FSI from Delhi Development Authority for their Delhi Property. The company is expanding its existing Delhi property of 517 rooms by adding 35 rooms. Besides, the company is also erecting a new tower with a total built in area of around 1.66 lakh square feet. With this new tower, the company shall foray into the service apartment segment. These service apartments would be up for business by the middle of 2011-12. With these apartments, Asian Hotels (North)'s capacity would increase by 60%. The company has struck a joint venture in an overseas company, which is into hospitality consulting services. The overseas company has subscribed to equity and preference shares of Rs. 53 crore ( at Rs420 a share) and Rs 347 crore. These funds would be used for capacity expansion.

Kolkotta Project
-------------------
The company has paid EMD for allotment of free hold land of six acres  by West Bengal Housing Infrastruture Development Corporation for the its Kolkota five star hotel project.

The foreign connection
-----------------------
The company after obtaining approval of FEMA had made an investment of Rs 391 crore in Fine Hospitaltity and Consultancy Pte Ltd Maurities  for acquiring 53% stake. FHCPL is in the business of providing project development and project management primarily in hospitality sector.


Magus estates and Hotels Limited owns and operates "Four Seasons" an 202 foreign branded hotel in Mumbai. http://www.fourseasons.com/mumbai/ The hotel is in receipt of allotment order for develpment of additonal FAR and has started expansion there at. Magus is the subsidiary of FHCPL thus the connection intact....
Mumbai connection
--------------------


During the year company had raised  converted outstanding Fully Convertible Preference share worth Rs 263 crore into equity shares at rate of Rs 419.80 per share

During the year company had deferred the redemption by two year of Non Convertible Preference share worth Rs 49 lakh with the consent of Magus a subsidiary company