LTP03 Asian Hotels West

NSE: AHLWEST

BSE: 533221

Asian Hotels West has come out with superb number for 2010-11

The net profit for the year was Rs 16.82 crore over a total income  Rs 137.19 crore
with an Operating profit of Rs 45.37 crore

On the paid up capital of 1.14 crore share of Rs 10 each ie., Rs 11.40crore
the EPS was Rs 14.60 and the book value of the share was Rs 262
The current market  price is Rs 192  the total market capitalisation is Rs. 227 crore and
the share is trading at a PE of 13.1 x and P/ BV of 0.73x
against the Industrial PE of 33x and P/BV of 1.15x

History of Asian Hotels West 
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The Company was originally incorporated as Chillwinds Hotels Private Limited on Jan8, 2007,
under the Companies Act, 1956, with the Registrar of Companies, NCT of Delhi and Haryana.
The Company was converted into a Public Limited Company and the subsequently the name was
changed to Chillwinds Hotels Limited w.e.f August 25, 2007. The Company entered into a Scheme
of Arrangement and Demerger with M/s Asian Hotels Limited (Transferor Company)  which is now
known as Asian Hotels (North) Limited) and its shareholders & creditors and M/s Vardhman
Hotels Limited (Transferee Company – II) now known as Asian Hotels (East) Limited and its share-
holders which became effective on February 11, 2010.
The three promoters- Sushil Gupta, Shiv Jatia and Umesh Saraf, who brought the Hyatt hospitality
brand in India under Asian Hotels,- are demerging the company. Under the split formula, Shiv Jatia
will operate the Delhi-based Hyatt Regency, Sushil Gupta will control Hyatt Regency in Mumbai
and Umesh Saraf, the Kolkata-based Hyatt Regency.

On the scheme becoming effective the Mumbai undertaking of the Transferor Company was
demerged and vested in the Company. The name of the Company was further changed to Asian
Hotels (West) Limited w.e.f February 12, 2010 pursuant to the scheme.

According to the scheme of demerger, the Mumbai undertakings had been compensated for its
smaller size in terms of cash and equivalents and development rights and Asian Hotels (West)
received non-convertible redeemable preference shares worth Rs 89 crore at 1%
and the right to develop a property each in Bangalore and Delhi's international airport,
besides the Mumbai property.

Mumbai property
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Asian Hotels (West) owns a 400 room property in Mumbai, Hyatt Regency a luxury 5 star hotel
http://mumbai.regency.hyatt.com/hyatt/hotels/index.jsp?null located on Sahar Airport Road in
Mumbai (Bombay), India.  Hyatt Regency Mumbai is the city's premier gateway hotel.
The hotel is adjacent to Mumbai's international airport and minutes from the domestic terminals.
The hotel is also close to Santacruz domestic airport. Hyatt Regency Mumbai is the preferred hotel
for business travellers visiting the city of Mumbai. The hotel is also host to Club Prana Spa.

Delhi property to be unveiled in 2012
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It owns 66 % in subsidiary Aria which  is developing a 525 room JW Marriott at Delhi Airport
near the terminal T3 that is the new development which is coming. The new hotel will open in
2012 .The entire financial tie up for the new property is already there and ILFS Investment
Managers http://www.ilfsinvestmentmanagers.com/News/9235224007.pdf invested Rs 80 crore
 to acquire a 33% stake in Aria Hotels and Consultancy Services, a subsidiary of Asian Hotels the investment vehicle for Asian Hotels for the Delhi project.

Asian Hotels (West) have entered into a 30-year management contract with Marriott International to
develop the first JW Marriott hotel in Delhi with over 500 rooms at a project cost of Rs 700 crore.
Will also develop a multi-level commercial and retail complex adjoining the hotel property.

Pune Clarion in development
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In the mid-market segment, it has plans to develop a Clarion Hotel in Pune with 100 rooms and will
continue to expand its portfolio of Clarion-branded hotels through its association with a group company
‘Inovoa Hotels  Resorts Ltd.’ (IHPL), which has an exclusive Franchise Agreement for the Clarion brand.
IHPL has recently opened its first 130 room hotel property under its upscale “Clarion Century” Brand
at Whitefield, Bengaluru. http://www.clarionhotel.com/hotel-bangalore-india-II098 Hillwood Corporation USA, a Ross Perot Jr. company, is an investor in
Inovoa Hotels  Resorts.
So by year ending 2013, the revenue will grow almost three-fold.