Professional Documents
Culture Documents
June 2011
One of the key players in the growing luxury hotels segment in India
7 existing five star deluxe properties and 1 upcoming property, all in premium locations spread across India Strong business fundamentals and operating metrics as compared to industry average Well-recognized brand name
Alliances with Kempinski Group of Hotels, Preferred Hotel Group, the Global Hotel Alliance and ESPA Experienced management team with rich industry experience and proven execution capabilities
2011
The Leela Palace, New Delhi begins operations
2009
The Leela Palace, Udaipur begins operations
2006
Acquired Kovalam Hotels and rechristened it as The Leela Kovalam
2009
Enters into an agreement with Ambience Hotel to manage Hotel Leela Kempinski, Gurgoan
2008 1996
Added 60 new rooms to the Leela, Goa and established a 9-hole mini golf course The Leela Palace, Bangalore undergoes expansion
2001
The Leela Palace, Bangalore begins operations
1986
Leela Penta, Mumbai begins Operations
1991
The Leela, Goa begins operations
1981
Inception of Hotel Leelaventure
Low Room Penetration Levels in Indian Cities Promises Opportunity for Growth
Rooms / 1,000 persons
80
69.7
4,222
60 40
20.2
20
0.5 0.5 0.5 0.6 0.8 1 .7 3.2
5.6
5.9
7.1
5.2
5.9
7.1
7.2
7.3
8.4
8.7
Delhi NCR
Chennai
Tokyo
Johannesburg
Atlanta, GA
Amsterdam
65% 2014F
Tianjin
Hong Kong
Hyderabad
Madrid
Bengaluru
Shanghai
Singapore
Beijing
Moscow
Paris
New York
Indian Cities
Source: World Travel and Tourism Council
Asia-Pacific Cities
Global Cities
(1)
80%
3,995 3,510
75% 69% 70% 65% 60% 58% 57% 65% 63% 60%
1,000 0
464
542
548
612
679
764
55% 50%
2007
2008
2009
2010
2011F
2012F
2008
2009
2010
2011
2012F
2013F
Note: 1. CAGR calculated for cumulative tourist spending 2. F indicates forecasted values
Las Vegas
32.7
10,000 8,179 8,616
10,682
Occupancy in %
100.0 77.4 71.1 64.4 60.0 65.7 64.3 68.9 62.8 66.2 63.8
80.0
40.0
2.1
20.0
0.0
0.0 India Bengaluru India Goa Industry Mumbai Leela Delhi-NCR(2)
India
Bengaluru India
Goa Industry
Mumbai Leela
Delhi - NCR
(2)
Source: Industry Data from HVS Indian Hotel Industry Survey 2009-2010; Information on Company is from Management Note: 1. The above analysis is based on FY2010 numbers 2. Property considered for comparison is Leela Kempinski, Gurgaon (Leela Palace New Delhi not considered as it began operations in April 2011) 3. Serviced residences not included
Location
No.of Rooms
Owned/ Managed
Gurgaon Udaipur
New Delhi
The Leela The Leela Palace The Leela The Leela Palace The Leela Kempinski
Mumbai Goa
Chennai Goa
Owned Owned
Bengaluru
Chennai
Kovalam
Grand Total
Note: 1. Expected completion FY2012 2. Expansion through addition of rooms to the existing property
SATTE Awards
Global leader in the refined hospitality industry Facilitates reservations, sales and marketing services to more than 600 independent hotels in over 65 countries
Provides marketing, sales and reservation services Provides sales contact with the four largest consortia namely Ammex, CWT, BCD and Hogg Robinson, PHGs Airlines and Credit Card partnerships Target international sales via PHGs 29 Global Sales Offices Helps improve brand awareness among international travelers
Worlds largest alliance of independent hotel brands Currently comprises of nearly 300 hotels with over 65,000 rooms across 48 different countries
Leverage GHAs international services Provides access to key market sales support, hotel cross-promotional activity, trade show representation Access to frequent flier program partnerships, loyalty programs, public relations and advertising campaigns
EPSA manages the Leela Group Spas at Mumbai, Udaipur, New Delhi and Chennai Le Cirque would provide its world renowned culinary experience at the Leela Palace, New Delhi This would be its first and at present the only presence in India
One of New Yorks well known culinary destination known for its Italian and French cuisine
New York based high end Japanese restaurant Both its menu and design concept are a blend of traditional and modern Japanese times
Megu would be operating its specialty Japanese restaurant at the Leela Palace, New Delhi It would also expand its presence to The Leela, Mumbai in due course
Conferred the Padma Bhushan Award by the Government of India, 2010 The Green Hotelier, 2010 awarded by Gulf Connoisseur The Hotelier of the Century Award by International Hotel and Restaurant Association (IH&RA), (Switzerland) in 2010 for Capt. Nairs contribution to the hospitality industry in India during 50 years
Lifetime Achievement Five Star Diamond Award 2009 awarded by The American Academy of Hospitality Sciences Elected to Global 500 Roll of Honour by United Nations Environment Programme presented in 1999 in recognition of outstanding practical achievements in the protection and improvement of environment
Capt. C P Krishnan Nair Chairman Promoted The Leela Group of Hotels in 1986
Over 31 years of experience in the hotel industry Vice President, Federation of Hotels & Restaurants Association of India Chairperson of the World Travel and Tourism Council, India Initiative 2011
With the Company since its inception 32 years of experience in management, administration, marketing and hotel management
Extensive experience in project implementation, commercial and administrative matters Led the project implementation team for the Goa Hotel Project, 1991
31 years of experience in the field of finance, accounts, company secretarial, legal and commercial functions Associated with JSW for 15 years, Millipore India for 2 years and HMT Limited for 14 years
Over 32 years of experience in hospitality Previously worked with Oberoi and Taj groups Holds a Diploma in Hotel Management and an MBA in Hospitality Management
10
260
329
FY10
FY11
Industry Avg.
(2)
Udaipur
2,218
Source: HVS Indian Hotel Industry Survey 2009-2010
1,000
500
56%
0 FY2011 New Delhi (Operational Apr-11) Chennai + Goa Expansion (1) Total Rooms Post Expansion
28%
0% New Delhi
Source: HVS Indian Hotel Industry Survey 2009-2010
Chennai
The Company is planning to follow an asset light model for the medium term i.e. enter into more management contracts rather than owning and building hotel properties The Company also intends to evaluate expanding in overseas markets through the management contract route Evaluating the option of entering into the 4/5 star hotels in Tier 2 cities in India, under a different brand
Note: 1. Chennai hotel expected to be completed in FY2012 2. Industry average is calculated by taking the average of previous 3 years (FY08-FY10) in the region 3. The Leela Palace New Delhi has not been included as it started operations in April 2011 and has not completed a financial year
11
Pune
34,102 sq mts of land near the golf club on the main road to the Airport Company shelved initial plans of building luxury hotel after significant new supply came up in the area Agreement with Sky Realty Projects Private Limited (Sky Realty) on a 50:50 gross revenue sharing basis. Sky Realty to develop high-end residential cum commercial property Leela Lace Holdings Private Limited, one of the promoters, has co-invested in purchase of the property for a consideration of 50% of the gross sale proceeds receivable by the Company
Pune Bangalore
Surplus land of 8,027.07 sq mts next to Leela Palace Evaluating various revenue sharing opportunities to maximize value as in case of Pune
Hyderabad
Hyderabad
3.85 acres of land at a prime locality of Banjara Hills Company shelved initial plans of building a luxury hotel after
Bangalore Chennai
significant new supply came up in the area Evaluating various revenue sharing opportunities to maximize value as in case of Pune
12
Agra
Ashtamudi
Land located at Vellimon (Asthamudi Lake) near Kollam, Kerala which is owned by a group company Company exploring arrangements with the group company to develop a five star deluxe resort
Ashtamudi
13
Revenue
3% 5% 17% 13% 35%
INR MM
14% 12%
16% 13%
44%
41%
37%
35%
33%
31%
30%
Net Income
INR MM
Revenue growth and profitability were adversely impacted during FY10 due to global
1,486 1,450
4,000 3,026 3,000 2,000 1,000 0 FY08 FY09 FY10 FY11 2,852 1,826
2,000 1,500
1,534
Reversal of trend seen in FY11 with a 15.7% y-o-y growth in revenue and 18.9% increase in EBITDA Net Income in FY11 was lower due to high interest expenses
Note: 1. Does not include management fees derived out of Gurgaon property as it is accounted as other income
14
Appendix
2010-11
2009-10
2008-09
2007-08
Income
Room Revenue Food & Beverage Revenue Other Operating Services Income from Rental & related Services Sale of Power Income from Operations Other Income Total Income 2,965 1,453 569 159 113 5,259 275 5,534 2,556 1,256 469 145 65 4,491 292 4,783
(1)
Expenditure
Consumption of raw materials Employee Cost Fuel, Power and Light Other Expenses Total Expenditure EBITDA Depreciation Interest Profit Before Tax Provision for Tax Net Profit 356 1,145 445 1,762 3,708 1,826 684 576 566 188 378 306 954 439 1,550 3,249 1,534 683 245 606 196 410 288 894 446 1,487 3,115 2,852 654 272 1,926 476 1,450 324 815 413 1,453 3,005 3,026 453 355 2,218 732 1,486
Note: 1. This includes profit on buyback of bonds of INR 646 MM for FY 2008-09 and INR 6 MM for FY 2009-10
16
Current Market Capitalization(2) (INR MM) Current Market Capitalization (USD MM)
60
6
10.5%
40
4 (15.5%) 2
20
0 Jun-10
Nov-10
Hotel Leelaventure
Jan-11
Sensex (Re-based)
Mar-11
Apr-11
Jun-11
Note: 1. 2.
17
20%
Operational since 1986, it continues to be one of the popular luxury hotels in Mumbai Proximity to the International & Domestic airports and business hubs like the Bandra Kurla Complex (BKC) makes it an attractive location
Room Mix
No. of Rooms
16,000
500 375 250 58 304 29 1 392
12,000
90%
80%
70%
125 0 Premiere Rooms Royal Club Rooms Suites Maharaja Suite Total
60%
18
The hotel is located in close proximity to the city centre and recreates the architectural style of the palaces of Mysore in a modern art deco form Commenced operations in 2001 with 256 guest rooms and expanded to 357 guest rooms in FY08 Operating margin for Bangalore is the highest among all Leela properties
Room Mix
No. of Rooms
18,000
500 375 80 250 125 0
Deluxe Rooms Royal Premiere Rooms Royal Club Rooms Conservatory Rooms Suites Maharaja Suite Total
15,870 71%
15,739
80%
44 184
20
28
357
12,000
11,594 69%
70%
6,000
60%
50%
19
Spread over 50.46 acres and located on the Mobor beach in South Goa between the river Sal and the Arabian Sea, the hotel is designed to reflect the Indian and Portuguese heritage The hotel is operational since 1991 and underwent significant expansion in 1994 The next phase of expansion is currently underway. An additional 20 rooms would be available post expansion taking the total number of guestrooms to 206
Room Mix
No. of Rooms
12,000 11,056
15 46 4 1 186
200 150 100 66 50 0 Conservatory Pavilion Premiere Rooms Rooms Lagoon Suite
74% 10,000
54
8,000
Club Suites Royal Villas Presidential Suite Total
20
This resort was purchased by Hotel Leelaventure from M Far Hotels Limited in 2005 Has 183 rooms and suites, spread over 44 acres of land Kovalam being one of the main tourist attractions in Kerala, it enjoys high ARRs and ORs during the tourist season from November to March
Room Mix
No. of Rooms
74%
250 200 150 100 50 0 Beach View Superior Rooms Club Rooms Garden View Rooms Club Suites Presidential Suites Duplex Suite Total
6,000
71%
71%
41 49 84
183
8,000
21
32
148
Operational since April 2009, the hotel is located on the banks of Lake Pichola, Rajasthan All 80 guestrooms and suites are on the waterfront of Lake Pichola and overlook the Aravali mountains It is primarily a leisure market and a favored destination with both domestic and foreign travelers
FY11
Room Mix
No. of Rooms
100 75 50 25 0 Lake View Heritage Lake View Rooms with Rooms with Balcony Balcony Luxury Suites Duplex Suites The Royal Suite The Maharaja Suite Total
20,800 21,000
16 56
80
21,200
24%
20%
15%
21,004 10%
22
2,500 2,000 1,500 558 1,000 500 0 FY10 FY11 Other Revenue 1,292 918 812
Operational since April 2009 The property is owned by the Ambience Group Hotel Leelaventure operates the hotel through a management agreement Achieved 77% occupancy in its first year of operations
Room Revenue
Room Mix
No. of Rooms
450 375 300 225 150 75 0 Guestrooms Executive Suites Deluxe Suites Presidential Suite Total 294 21 6 1 322
90
412
10,000
8,000
23
Located in the exclusive Diplomatic Enclave Close proximity to Rashtrapati Bhavan, the Secretariat, as well as the central business district and historical monuments Spread over 12,141 sq mts of land Room Mix
No. of Rooms
Had soft launch in Sep 2010 before the Commonwealth Games; ceremonial opening in Apr 2011 The hotel, including new restaurants, will be fully operational in Q2FY2012 Offers luxury of oversized suites and guestrooms Restaurants and lounges Le Cirque (Italian cuisine) and Megu (Japanese cuisine) from the United States, set to open shortly Exclusive spa services by ESPA Ability to service multiple guest segments at multiple price points
15
260
also benefit from this property, as New Delhi is one of the key source markets
24
Room Mix
No. of Rooms
Located in Adyar in Chennai, the hotel is proposed to be one of the largest business hotels in the city
24 57 16 13 1 1 1 329
Palace property facing the beach front Majority of the 329 guest-rooms and suites overlooking the Bay of Bengal 16,500 sq ft large contemporary convention
70 0
Deluxe Rooms Royal Club Rooms Premiere Rooms Suites Deluxe Luxury Apartment Apartment Royal Suite Maharaja Suite Total
25
Thank You
26