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Hotel Leelaventure Limited is an India-based company engaged in the
business of hoteliering. As of March 31, 2010, the Company owned and
operated six hotels at Mumbai, Goa, Bangalore, Kovalam (Kerala), Udaipur
and Gurgaon totaling to 1,523 guestrooms and 90 serviced apartments.
The Leela Kempinski Mumbai is set amidst 11 acres of landscaped
gardens and has 390 rooms. The Leela Palace Kempinski Bangalore has a
total of royal premiere rooms. The Leela Kempinski Goa is a five-star
beach resort with 185 rooms. The Leela Kempinski Kovalam Beach, Kerala
has 182 rooms and suites. The Leela Kempinski Gurgaon, Delhi (NCR) and
The Leela Residences Kempinski Gurgaon has 322 oversized rooms and
suites and 90 service apartments respectively. The Leela Palace
Kempinski Udaipur has 72 rooms and eight suites. The 260 room Leela
Palace Kempinski New Delhi is located in the exclusive diplomatic enclave.

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Hotel Leelaventure Limited has announced its financial results for the third
quarter ended 31st December, 2010 with the total income at Rs. 142.25
crores as against Rs. 127.74 crores during the corresponding period in the
previous year, showing a growth of 11%

The company has reported an EBITDA of Rs. 60.90 crores for the third
quarter, an increase of 10% over the amount of Rs. 55.57 crores for the
corresponding quarter in the previous year. The company¶s Net Profit is Rs.
22.04 crores during the quarter, as against net profit of Rs. 28.86 crores
during the corresponding period in the last year.

The total income of the company for the first nine months of the current
financial year is Rs. 353.68 crores as against Rs. 303.57 crores during the
corresponding period in the previous year, an increase of 17%. The
EBITDA for the first nine months of the current financial year is Rs. 125.80
crores as against Rs. 103.02 crores for the same period of the last year, an
increase of 22%. The Profit After Tax for the first nine months of the current

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financial year is Rs. 26.55 crores as against Rs. 31.65 crores for the same
period of the last year. This reduction is mainly due to the interest,
depreciation and other costs relating to the new resort at Udaipur, which
went into full operations during the current year.

The Board of Directors have also approved a Scheme of Arrangement


under Section 391 to 394 of the Companies Act, 1956 for acquiring the land
presently on lease, in Bangalore, Goa and Mumbai against issue of shares.
When the Scheme is approved by the appropriate authorities, about 7.90
crore equity shares of Hotel Leelaventure Limited would be issued to the
shareholders of Leela Lace Holdings Private Limited.

Continuing the successful buyback of the FCCBs achieved in the last year
ended 31st March, 2009, this year also the Company had bought back
FCCBs at discount to accreted price. Till date, the Company has bought
back 59% of its US$ bonds and 24% of its Euro bonds. The promoters
have also increased their stake to 53.32% through creeping acquisition.

Commenting on the results, Mr. Vivek Nair, Vice Chairman and Managing
Director said that the revenue and EBITDA generated so far in the current
financial year reflects the turnaround the hotel industry is witnessing. Not
only has its business hotels in Mumbai, Bangalore and Gurgaon performed
well but also its resorts at Goa and Kovalam have shown excellent
operating results with increased Tourist arrivals specially from the C.I.S.
countries. He expects the buyoncy to continue, which augurs well for its
new iconic hotel at Chanakyapuri in Delhi, which has 260 guestrooms and
suites and the Chennai Hotel with 329 guestrooms and suites, which is
slated to commence operations by July 2011. When the New Delhi and
Chennai hotels are fully operational, the total inventory would go up from
1608 to 2197 gurestrooms, which would result is substantial increase in
revenue.

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is a strategic planning method used to evaluate the
trengths, eaknesses, pportunities, and hreats involved in a project or
in a business venture. It involves specifying the objective of the business
venture or project and identifying the internal and external factors that are
favorable and unfavorable to achieve that objective. The technique is
credited to Albert Humphrey, who led a convention at Stanford University in
the 1960s and 1970s using data from Fortune 500 companies.

A SWOT analysis must first start with defining a desired end state or
objective. A SWOT analysis may be incorporated into the strategic planning
model. Strategic Planning has been the subject of much research.

trengths: characteristics of the business or team that give it an advantage


over others in the industry.

eaknesses: are characteristics that place the firm at a disadvantage


relative to others.

pportunities: | | chances to make greater sales or profits in the


environment.

hreats: | | elements in the environment that could cause trouble for
the business.

Identification of SWOTs is essential because subsequent steps in the


process of planning for achievement of the selected objective may be
derived from the SWOTs.

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‘  !‘  ‘‘  is an Indian luxury hotel chain based in


J currently with seven deluxe hotels, located in Mumbai, Bangalore,
Kovalam, Udaipur, Goa ,Delhi and Gurgaon. Owned by the Leela Group
founded in 1957, named ||, after the wife of its founder, C. P. Krishnan
Nair, the Leela Hotels have marketing alliances with Germany based
Kempinski Hotels,US-based Preferred Hotel Group and are members of
Global Hotel Alliance based in Geneva, Switzerland.As the Leela group of
hotels is one of the growing luxury hotel brand in India,let us try to find out
the Streanth,Weakness,Oppurtunities & Threats.

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Location : All the hotels of Leela group are located in
strategic place, in terms of scenic beauties, transport ,historical importance.

Architecture : Most of the hotels architecture of Leela represents


the traditional Indian culture.Leela bangaluru &Udaipur was transformed
palaces into hotel,Bangalru & Goa¶s main building architecture @
ambience showcases the inspiration of vijaynagar dynasty.

Standards :It offers it guests the leisure of international


standards. Every details of guest¶s luxury is being looked after .

Status :It only operates luxury hotels in India,no other


categories of hotels are not in its productline,thus brand Leela offers a
status to their guests.

3   Hotels have marketing alliances with Germany based


Hotels, the oldest luxury hotel group ,US-based Preferred Hotel Group and
are members of Global Hotel Alliance based in Geneva, Switzerland.

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Only operates as luxury chain:Leela group of hotels only
operates in luxury hotel market, so the revenue remain untouched which
could have earned from other categories of hotels.

Operates only in a particular part of India: Hotels of


Leela group are basically located in southern or western part of India ,north
western,eastern,north eastern part of India is still to explore.

Absence in international market:Leela group of hotels


only operates in India, it will take long time to consider as a international
brand.

Higher attrition rate of employees: Employees of Leela


group of Hotels are not satisfied with their jobs, resulting the attrition rate
very high, thus it is leaving a drawback towards the commitment of making
Leela as a world class hotel .

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Presence in international market: Opening up some
hotels in the international market would give it a opportunity to become a
international brand along with a huge sum of foreign revenue.

Opening hotels in some parts of India:It has got the


opportunity to earn more revenue by opening new property in the places
which is tourist¶s hot destination but still unexplored by other chains of
hotels.

Explore in other categories of hotels:Opening up the


other categories of hotels other than luxury hotel will make it as a
acceptable brand by the all categories of guests.


More of local guests:As the majority of Leela¶s guest¶s are
foreigners,it could revamp its policy and come up with lucarative offers for
local clientsboth in the season & off-season.

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Foreign brands opening up:Most of the international hotel
brand had taken their entrance into the Indian market ,making the Indian
leisure market very competitive.

Recession: Global recession had also effected the leisure market,


which reduces the number of tourist from foreign countries.

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Leela group of hotels is planning to add up six new hotels into their wings,
which are slotted to be operational at the end of 2011 or at the begeining
of 2012.The five new properties will come up in Delhi ,Chennai,
Asthamudi, Agra, Hydrabad & Pune.

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Capt. C.P. Krishnan Nair, chairman of the Leela Group of Hotels,is very
particular about protecting nature, He calls it a small environment oasis as
it resembles a grove replete with greenery and shades. The verdant
ambience of his home facing the sea at Payyambalam in Kannur reflects
his obsession with the idea of giving an environmental touch to his projects.
µVidhi,¶ his house, has a wide variety of trees and plants.He says that it is a
big family, one can not sustain by exploiting the other. As a hotelier, he is
particular that the Leela hotels and resorts in different parts of the country
should be an oasis of greenery. The existing properties of the Leela Group
have over 35,56,600 saplings and plants. The group plans to grow another
78,447 trees and plants in its new hotel projects, he says.

Emphasising corporate responsibility to ensure environment protection and


sustainability, 87-year-old Capt. Krishnan Nair says that the Leela Group of
Hotels supports the United Nations Environment Programme¶s billion tree
initiative to encourage tree planting. It may be recalled the he was
conferred the prestigious UNEP¶s Global 500 Laureate Roll of Honour by
Emperor Akhito of Japan in 1999 for his environmental initiatives.

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From the above discussion we could summarize that Hotel Leela ventures
Ltd,which is a $971259 company, which operates luxury hotels in india and
has seven operational hotels and six more hotels to open mainly garner
foreign guests and NRIs,has marketing tie up with one of the oldest luxury
international hotel brand from Germany.It has many good points to attract
prospective guests.The area where it need to concentrate is to open up
some new properties in the unexplored market in india & abroad.Leela can
open up its hotel in Shilong.Uttrakhand,Amritsar,lakswadeep,which are in
India & also in some intertional location like Maldives, Bali, Pattaya,
Saycelles, Kenya,USA, Istanbul.It could also attract the Indian guest in the
off-season when the occupancy rate is remains low by offering lucarative
package.They can reduce the attrition rate by offering more monetary &
other benefits to the employees as they are integral & most important
elements of hospitality industry.

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