No word on the new hotel in Kolkata in Sinclair’s AR 2019. Company has mentioned the details of Port Blair hotel though.
Regards
Harshit Goel
Disclosure: Not Invested
Resignation of company secretary should be taken as a red flag? In such small companies where company secretaries are not paid well can have such exits. Or is there a governance issue?
Looks like company has scrapped Kolkata hotel plan. As per the presentation (link), they are now planning to acquire hotels (ownership/lease) near to their existing properties. No mention of Kolkata hotel.
On the other hand, promoters holding has increased by 300bps to 59% in the quarter.
Not sure, how to make sense of these two contradicting points.
Disc: Tracking, not invested
Was going through an article by MoneyControl
It says they are looking for strategic partnership and will use this money for project in Kolkata
Not sure why moneycontrol is repeatedly bullish on the stock. Vested interest or reality?
This is indeed interesting.
Disc : Holding in my satellite portfolio.
Promoters holding increased from 59% to 62.5%
Is anywhere aware that how covid has affected the cashflows of this companies.
Sinclair rents some of their properties instead of owning it.
Here is the latest numbers for Sinclair :
Trying to understand the other income. Can anyone throw some light.
Disc : Invested
Hi
Can anyone help with few unanswered topics about sinclair hotels?
Interesting updates about the company from their company presentation dated Mar 2021 :
Also, they have additional land in few places, which keeps them in sweet spot.
Almost 425 rooms from 8 hotels. I guess, with 60 cr of Cash, they will go for Cluster approach with a mix of acquiring & leasing properties. Its a matter of time of getting a good deal & move on…
Disc : Invested
Hi Rahul,
Any idea what is the value of this land in Kolkata?
Just trying to arrive at a back of the envelope valuation:
Current Market Cap is 280 crores.
Cash is roughly 60 crores, hence effectively the market cap is 220 crores.
From what I know (I might be wrong here), they have some land in other locations as well apart from Kolkata. Just taking a random figure that the cumulative value of these land should be 20 crores. In this case, the company is effectively trading at 200 crores. Annual sales pre-covid used to be 45 crores. which is P/S ratio of 5.
With absolutely no growth visible in the last many years, I don’t see the company commanding any better valuation.
As an investor, I am not looking at growth. All I am looking at is re-rating given the strong fundamentals, and get out of the counter once that is done. I don’t see it as a buy&hold kinda stock.
Disc: Invested.
WHat are your thoughts?
Hi Mukund,
Did a quick search to understand the location of the Project in Kolkata.
In one of Sinclairs press release dated 2014, they have mentioned the location near Tata Medical Center.
Link here :
(https://www.sinclairshotels.com/pressroom/news/sinc_10406141044.pdf)
I did a google search to understand the location. I also found many 5 stars are already there in the vicinity, like Pride, Novotel, Fairfield by Marriott & Zone by Park. (Attaching a screenshot for reference)
I went to Magic Brick to find a property of similar size in near by areas. I found one of 1.5 acre costing 12 Cr. which is almost 2 km from Tata Medical Center.
As Sinclair’s has 1 acre land, I can safely assume the price of land to be between 7-8 cr. depending on the location.
I am not adding the land cost at other locations as thats part of the hotel for expansion, I dont think, Sinclairs would be looking to sell those.
Cash has moved to 65 crores as per Feb 2022 company presentation. chk here : (https://www.sinclairsindia.com/investor/SHL-Corporate-Presentation.pdf)
Here comes the interesting part :
Sinclairs has added a 18 room hotel in Dec 2021, which would be operational in Apr 2022. (Here is the link) :
https://www.sinclairsindia.com/investor/press-releases/Sinclairs-Yangang-09dec2021.pdf
A recent report suggests hotel occupancy touching pre covid numbers in leisure sector, which is the strength of Sinclairs.
Hotel industry witnesses rise in bookings for leisure, MICE events | The Financial Express
So all in all, todays MCap is around 255 Cr.
Kolkata land available for sale is approx. 7 cr.
Cash in Hand is 65 Cr.
Added one more property on lease to be operational next month.
Business doing great in short term due to pent up demand.
Can all these factors provide a re-rating to the business is yet to be seen.
Disc.: Invested.
Thanks for all the info, Rahul! Really helpful!
I see some good buying & technical breakout that’s happening in this counter. Fundamentally, the company is strong. The only major concern with the company is growth. Not sure what their plans are.
I had a few questions if you may reply to :
Are we including any Influencer marketing like Instagram/YouTube? If not, is there any reason as I have personally preferred to stay at a property that is covered properly by a travel influencer?
What is the impact of the recent Airport Closure for 15 days in Sikkim? If you can provide me with the percentage of cancellations or how did you handle the situation?
I see that your Gross Op Margin is 40% plus which is very high, is there any specific reason which you would like to mention for the same which helps us immensely in having this cost-benefit?
We have recently leased the 9th property in the chain, what are the ways we are marketing it or it’s just through the travel aggregators?
Just a Feedback: Is there a possibility that we can work on the Website and the pictures available there of the property, from a potential customer point of view they look pretty old to me when compared to other websites of big players.
I have sent the above query to their team today, let’s see what they come back with.
@whaoabhishek I am sure the Sinclairs Team may take some time to reply to these points. Though I am sharing my learnings & understanding of the business.
I manage Personal Branding for the CEO’s & top Management. As per my understanding of both the social media platforms, I can see the huge gaps on their Insta & youtube platforms.
The Bagdogra airport is closed (which gets more flights across the country), However, Sikkim airport is still operational. I happen to speak to one of my clients who is in the travel business and told me that flight rates from Sikkim to Delhi are Rs 30,000+ There is only 1 flight from Delhi-Sikkim-Delhi & 1 for Kolktata - Sikkim - Kolkata in a day . What I can see this would have definitely impacted the occupancy percentage of the hotel rather than many cancellations.
As per this tweet, airport closure was announced 2 months back which means all the cancellations & changes would have been managed accordingly.
My client also told me due to Pent up demand a lot of travel has been happening I could see OPM is 40% currently, which may reduce to normal levels after this summer.
The recent property is just 18 rooms property. The average occupancy of hotel Is 70% which means they have to sell 12-13 rooms every day which I believe is not a difficult task in the current scheme of arrangement for Sinclair hotels. I don’t think they would require any other method rather they would rely on traditional methods.
I found bit old but interesting video on Sinclair hotels for which I am sharing a link.
Disc: Tracking, not invested!
I recently started to read about Sinclairs Hotels as part of my hotel industry study. It looked interesting as it had no debt and had a good margin compared to pears. When I looked deep I could not get clarity on following
Appreciate your input.
