Byke hospitality - Truly asset light?

(ASPN) #163

This is already discussed in the last quarter. Pls refer to page 137 above.

(Rushikesh Kanthamani) #164

Promoters acquiring shares, and increased stake from 45.29 to 45.44 …though the increase is small but it builds up confidence.

(ravish) #165

The Byke follower should look at this post this gives very good ideas what is hotel industry expect from future and what is happening now. Very good points mentioned i am thankful to the author for the post.

(karthik810) #166

To experience the hotel, booked and stayed in jaipur on 23 rd to 25th.

The hotel is badly managed and personally felt very poor hospitality. Almost all the customers were complaining of the facilities.

Disc: Not invested wanted to study and experience the company.

(Mridul) #167

Karthik - Can you throw some more light on “badly managed” please? Were they short on staff? Or the staff was there but wasn’t courteous? Rooms were in bad shape? Cleanliness? Overall ambiance? Did you complain? How was your complain addressed? Did you try their food?

Reviews are quite bad on Tripadvisor as well. Half of their PAT is from Chartering business. So how they maintain their leased hotels doesn’t impact that business. Moreover, half of their revenues from leased and owned vertical is coming from conferences/food/parties.

Another thing - they want to adopt the franchisee model, but if their own brand is not good (so many customer complaints) what will they offer to the franchisees?

(jirohit) #168

their presentation mentions average room rates around Rs 3500 per night, but a check on make my trip on their properties shows price ranging from 1200-3000( mumbai which shall be most expensive). So not sure how can avg RR be Rs 3,500.

(karthik810) #169

The rooms are badly managed, The restaurant buffet is like hell. no body is there to serve /assist you.

There is no one to take care of complaints almost all the customers are complaining the bad hospitality with receptionist.

the bathrooms are in bad condition and are completely damaged.

The bedsheets are not properly washed. Everything was bad at the hotel.

Disc: not invested. these are my personal views.

(Mridul) #170

Thanks for your feedback, Karthik. This is rather serious. In this way they are not going to get any repeat business. I think they are severely understaffed. That is one of the reasons their performance ratios are much better than the industry. I think @rupeshtatiya pointed this out in one of the posts above.

On the other hand, promoter shopped 59000 shares in 160s and 2.01 lac shares at 174 this Dec.

(Brijesh Mahawar) #171

Watch carefully the last 12-16 quarterly shareholding of the company and you will observe something very useful.

(AmitContrarian) #172

What interesting ? I don’t see anything interesting.

(ravish) #173

Institutional investors have lapped up shares of this company and no price movement has happened in last one year very strange, if you see approximate 30% shares have been cornered by these FIIs. I am invested here because of some good return ration given by this company even in bad times and i am ardent follower Kenneth Andrade and he says when a company is making profit even in bad times of its sector than it is going to make huge money when the sectors starts see tailwind. I believe and reading related article about turnaround happening in Hotel industry in recent quarters. I think it is fairly valued now but any new addition in Rooms will give filip to its bottomline. We can aslo console our self by looking at the holdings of these marque funds.

Discl: Invested

(Vinu56) #174

Any analysis on recent results…future prospects … promoter increasing stake…

(bullrun1988) #175

My concern about Hotel Delotel is becoming a big, it is not being operated but eating up Leasing cost that would be substantial in my view because it is in Borivali which is a costly place. Why are they giving same pages in investor presentation for so many quarters.

Disc: Not invested.

(kauban) #176

Any idea why Delotel is not yet operational? Is it pending receipt of some sort of govt clearance/OC before they can start operations? The Shimla property seems to have started much faster despite being signed up later.

(Ranjan K) #177

FIIs holding as on March 31, 2017 was 9.07%. As on 31st December 2017, the same stands at 24.87% with entry of new investors and additions by existing ones…asset light business model, good return ratios such as RoE and RoCE, reasonably good industry growth potential, very low free float…Yet the stock struggles to move beyond 200…

(Mridul) #178

Accounts put up a rosy picture, no doubt. But their services are not good. Pathetic reviews where guests are complaining for even basic things like bed-sheets, unclean bathrooms, food, etc. I did some scuttlebutt (my hotelier friends), they said it is a small brand with no brand power.

I am really not sure of what to make out of it. There return ratios are amazing due to Room Chartering. But can a hospitality provider remain in business despite such poor services?

(Ranjan K) #179

Yeah same here…not sure of what to do with my small sum invested there…FIIs in particular Grandeur Emerging Fund has been raising it’s stake through out the year…promoters hold around 45% and around 30% is held by different FIIs…i.e. 75% shares are somewhat closely held…so the trading float is quite low…given the sectoral tailwinds, the mcap could see some considerable uplift if they 1.) correct the ground level issues as mentioned by you 2.) expand capacity as planned with improved occupancy

(Vikas Kasturi) #180

Anil Patodia’s holding in March 2017 was 3.38%. Today (Mar 2018), it is 4.58%. In the last 2-3 months he has been constantly buying shares of the company from the market. Are such creeping acquisitions indicative that the owner-operator knows things that the Market is currently discounting?

A second unrelated question. Does anybody know why the conference calls have not happened in the last 9 months?

(paresh.sarjani1) #181

March 2018 shareholding is still due.
expect the promoter. holding increased

This is due breaking long term range.

Borivali should start contributing and marriage season too.

expecting good quarters

(Sandokan) #183

I am a newbie here and in learning mode. I would second your views and also add that it seems that the caution conveyed by @dd1474 (Dhiraj Dave) and his excellent analysis have not been adequately considered. And the scuttlebutt was done quite late, methinks. My take from this thread is that one needs to curb one’s enthusiasm and sentiments and look at any potential investment dispassionately.

Thank you Valuepickr and its senior contributors!