The company has signed its first management agreement with Ambience group of developers based in New Delhi Hotel to manage Hotel Leela Kempinski in Gurgaon plans to sign more hotels in the country via the management contract route. This is a complete reversal of the capital-intensive strategy adopted by The Leela of owning, managing and operating its hotels.
Except for the top 12-13 cities the company has no plans to invest in hotel properties which will require an investment of Rs 2.5-3 crores per room. The new projects going forward will be largely based on the management contract model which will reduce the capital intensity of its growth. This is part of the company’s strategy of moving away from an asset-intensive model to an asset-light model that relies on fees, and percolates straight to the bottom line. The new strategy will also help the company consolidate its network and reduce capital expenditure.
The ownership model of hotels enables chains to benefit from a potential appreciation in the properties that are owned. However, it limits the ability to expand rapidly as the hotel owner has to put in equity as well as raise debt for developing each luxury hotel. To ensure scalability, several international hotel chains have opted for the management contract route. This has allowed them to sign up many hotel properties in India.
| Company Name | CMP |
|---|---|
| Indian Hotel | 781.90 |
| EIH | 393.30 |
| Chalet Hotels | 849.15 |
| Mahindra Holi.&Resor | 334.80 |
| Lemon Tree Hotels | 140.65 |
| View more.. | |
MoneyWorks4Me rating and ranking of funds for SIP is available to subscribers only. Moneyworks4Me is not a rating and ranking agency, however it is required that users have a way of selecting funds and building a Portfolio. The method used by it are described below to enable users to understand the logic behind the rating and ranking Subscriber will find more details on this in the various content made available from time to time. In case you need more please write to besafe@moneyworks4Me.com
MoneyWorks4Me rates and ranks mutual funds based on the following data-driven system:
Funds ranking in screeners: Performance Consistency and Quality are two parameters used for ranking funds for SIP. The ranking as follows GG, GO, GR, OG, OO, OR, RG, RO and RR.
With the same color-coded funds, the one with the higher Average 3-year rolling returns (over 5 to 10 years), the number that appears in the Performance tag, ranks higher.
Here is the summary:
The third tag Upside Potential is not relevant for SIP. It is relevant for lumpsum investments in Mutual Funds.
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