theleelapresentation 2014 inr.ppt - aceanalyser meet/100193_20140527.pdf · a leading player in the...

Corporate Presentation

June 2013

Corporate Presentation

June 2014

2

Hotel Leelaventure Limited: Introduction

A leading player in the growing luxury hotels segment in India, with

a well-recognized brand name

8 existing five star deluxe properties, all in premium locations

spread across India, of which 6 are owned

Company presently adopting asset light strategy. More hotels being

taken on Management

Strong business fundamentals and operating matrix as compared

to industry average making its hotels RevPAR leaders in most of

the markets it operates in

Alliances with Preferred Hotel Group, Global Hotel Alliance, ESPA,

Le-Cirque and Megu

Experienced management team with rich industry experience and

proven execution capabilities

3

\

1981Inception of Hotel Leelaventure

1986Leela Penta, Mumbai begins

Operations

1996 Added 60 new rooms to the Leela, Goa and

established a 9-hole mini golf course

2009Leela, Gurgaon under

Management contract

1991The Leela, Goa begins operations

2001The Leela Palace, Bangalore begins

operations

2006Acquired Kovalam Hotels and rechristened it

as The Leela Kovalam

2008The Leela Palace, Bangalore undergoes

expansion

2009The Leela Palace, Udaipur

begins operations

2011The Leela Palace, New Delhi

begins operations

Evolution of Hotel Leelaventure Limited

2013The Leela Palace, Chennai

begins operations

2011The Leela, Kovalam

Under management contract,

After sale

4

World Travel

Awards

The Leela Palace Bangalore

• India’s Leading Conference Hotel - 2010

• India’s Leading Business Hotel - 2007, 2008, 2009

The Leela Goa

• Asia’s Leading Resort - 2007, 2008

The Leela Mumbai

• Nominated for World’s Leading Presidential Suite – 2010

The Leela Kovalam

• Asia’s Leading Resort – 2010

National

Tourism Award

The Leela Palace New Delhi

• One of the top Hotels in the World, Condé Nast TravelerGold List, USA - 2014

• The Spa by ESPA voted Favourite Hotel Spa, Condé Nast Traveler Readers’ Travel Awards, India - 2013

The Leela Palace Udaipur

• One of the Best Leisure Hotel and Best Hotel Spa, CondéNast Traveler Readers’ Travel Awards, India - 2012

• One of the Best New Hotels in the World, Conde Nast Traveler, USA – 2010, 2012


• Favorite Business Hotel in India, Condé Nast TravelerReaders’ Travel Awards, UK - 2010

• One of World’s 681 Best Places to Stay, Condé Nast Traveler Gold List, USA – 2010

The Leela Mumbai

• The Spa by ESPA voted as one of the World’s Top Sybaritic Spas, Condé Nast Traveler Hot list, USA - 2010


• The Maharaja Suite named as one of The Nation’s Top 25 Presidential Suites, Travel + Leisure India & South Asia -2013


• The Presidential Suite named as one of The Nation’s Top 25 Presidential Suites, Travel + Leisure India & South Asia - 2013

Capt. C. P. Krishnan Nair

• Lifetime Achievement Award conferred on Capt. C.P. Krishnan Nair, Condé Nast Traveler Readers’ Travel Awards, India - 2011

The Leela Palace Chennai

• One of the World’s Best New Hotels, Condé Nast Traveler Hot List, UK - 2013

The Leela Palace Chennai

• The Best New Hotel, Travel + Leisure India & South Asia, Readers Choice Awards - 2014

• One of the Best New Hotels, Travel + Leisure USA, ‘IT’ List – 2013


• “Best of the Best” Hotel in the World, Robb Report USA –

2012


• One of the World’s Top Resorts and The Most ExclusiveRetreat on Earth, Robb Report USA - 2012

The Leela Ambience Gurgaon

• 10th Best Hotel in India, Condé Nast Traveler Reader’s Choice Awards, USA - 2013


• Ranked amongst India’s Hottest Wedding Destinations,

Forbes – 2007

The Leela Kovalam

• Best Five Star Deluxe Hotel – 2008-09

Well Recognized Brand Name

5

Best in Class Alliances and Tie-ups

Alliances Credentials Relationship with Leela

• Global leader in the luxury hospitality industry

• Facilitates reservations, sales and marketing

services to more than 650 independent hotels in

over 65 countries

• Provides marketing, sales, reservation and technological support.

• Provides sales contact with large consortia namely– Amex, CWT, BCD and Hogg

Robinson, PHG’s Airlines and Credit Card partnerships

• 33 Global Sales Offices assist in promoting transient business for all hotels

• World’s largest alliance of independent hotel

brands

• Currently comprises nearly 335 hotels with over

65,000 rooms across 61 countries

• Helps improve brand awareness among international travelers

• Leverage GHA’s 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

• World renowned brand for spas and skincare

products

• ESPA manages the Group’s Spas at The Leela Palace Udaipur, The Leela Palace New

Delhi . ESPA products and treatments are offered at The Leela Mumbai

• One of New York’s well known culinary

destination known for its Italian and French

cuisine

• Le Cirque provides its world renowned culinary experience at The Leela Palace, New

Delhi and The Leela Mumbai.

• Le Cirque Signature - exclusive French-Italian dining experience has opened at The

Leela Mumbai and is slated to open at The Leela Palace Bangalore and The Leela

Palace Chennai

• New York based high end Japanese restaurant

• Both its menu and design concept are a blend of

traditional and contemporary Japanese

• Megu operates its specialty Japanese restaurant at The Leela Palace New Delhi

6

Late Capt. C P Krishnan Nair

Founder Chairman

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. Nair’s contribution to the hospitality industry in India during 50 years

Strong Management Team with Proven Capabilities

Over 34 years of

experience in the

hotel industry

Hon. Secretary and

immediate Past

President of

Federation of Hotels

& Restaurants

Association of India

(FHRAI).

Vivek Nair

Chairman & MD

With the Company

since its inception

34 years of

experience in

management,

administration and

marketing

functions

Dinesh Nair

Co Chairman & MD

34 years of

experience in

finance, accounts,

company secretarial,

legal and

commercial functions

Associated with JSW

group for 15 years,

Millipore India for 2

years and HMT

Limited for 14 years

Krishna Deshika

Director Finance & CFO

Over 35 years of

experience in The

hotel industry

Previously worked

with Oberoi and Taj

groups

Holds a Diploma in

Hotel Management

and an MBA in

Hospitality

Management

Rajiv Kaul

President

Promoted The Leela Group of Hotels

in 1986

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

Over 37 years of

experience in project

implementation,

legal, commercial

and administrative

functions

Led the project

implementation team

for the Goa Hotel in

1991

Venu Krishnan

Deputy Managing Director

Lifetime Achievement Award at Conde Nast

Traveller India’s Readers’ Travel Award conferred

in Decenber 2011

7

Evolving Pan – India Footprint

Hotel Location No.of

Rooms

Owned and Managed

The Leela Mumbai 390

The Leela Goa 206

The Leela Palace Bengaluru 357

The Leela Palace Udaipur 80

The Leela Palace New Delhi 260

The Leela Palace Chennai 326

Total 1619

Managed

The Leela Ambience Gurgaon 411

The Leela Raviz Kovalam183

Total 594

Grand Total 2213

New DelhiGurgaon

Udaipur

Goa

Bengaluru

Kovalam

Chennai

Mumbai

Location of Existing Hotels

8

The Leela, Mumbai

Operational since 1986, The Leela Mumbai 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

The Hotel is built on land of 18000 sq mtrs (4.45 acres) leased

from AAI and 7525 sq mtrs (1.85 acres) leased from the Promoter

Company

No. of Rooms

Room Mix

302

5829 1

390

0

100

200

300

400

500

PremiereRooms

RoyalClub Rooms

Suites Maharaja Suite Total

Facilities

Grand Ball Room of 11742 sq. ft. divisible in 5 parts

5 Meeting Rooms

Spa, Sate-of-art fitness centre and Warren Tricomi Salons

Dining

CITRUS – 24 hour brasserie offering multi cuisine specialty

Jamavar – Indian specialty cuisine

The Great Wall – Chinese specialty cuisine

Le Cirque Signature – Italian specialty cuisine

6 Degrees - The cosmopolitan bar

Facilities and Dining

9

The Leela, Mumbai

Revenue Breakup ARR and Occupancy

INR Mn INR

583 600 615 594

878 920854 757

34%

25%

20%

9%

5%

10%

15%

20%

25%

30%

35%

40%

0

250

500

750

1,000

1,250

1,500

1,750

2,000

FY11 FY12 FY 13 FY 14

Room Revenue Other Revenue Gross Op. Profit as % of Rev

8,526 8,535 8,207 7,717

72%

76%73%

69%

40%

50%

60%

70%

80%

90%

100%

4,000

5,000

6,000

7,000

8,000

9,000

10,000

FY11 FY12 FY13 FY14

ARR Occupancy

10

The Leela, Goa

The Leela Goa is operational since 1991 and underwent significant

expansion in 1994 and renovation in 2011.

The Leela Goa has 206 luxuriously appointed guestrooms and suites

Spread over 50.46 acres and located in Cavelossim on the Mobor beach

in South Goa between Sal River and Arabian Sea, the hotel is designed

to reflect the Indian and Portuguese heritage

The Hotel is built on 38.58 acres of land owned by the Company and

11.88 acres of land leased from the Promoter Company

94

66

2615 4 1 206

0

50

100

150

200

250

LagoonTerraceRooms

ConservatoryPremiereRooms

LagoonSuite

ClubSuites

RoyalVillas

PresidentialSuite

Total

No. of Rooms

Room MixFacilities

Ballroom of 6585 sq ft, 1 Conference room and 2 Boardrooms

Golf course, Tennis Courts, Spa and and other facilities

Warren Tricomi Salon – ultimate experience in luxury hair and beauty care

Aqua: Entertainment lounge and discotheque

Dining

The Restaurant - All day dining and multi cuisine restaurant

The Riverside – the Italian restaurant

Susegado – Seafood restaurant

The Yali Lounge

The Pool Bar

11

The Leela, Goa


271 225 341 367

528478

738809

36%34%

41%45%

20%

30%

40%

50%

60%

0

250

500

750

1,000

1,250

FY11 FY12 FY13 FY14


11,115

13,854

13,742

15,199

71%

73%71% 71%

55%

60%

65%

70%

75%

80%

85%

3,000

6,000

9,000

12,000

15,000

18,000

FY11 FY12 FY13 FY14

ARR Occupancy

INR Mn INR

12

The Leela Palace, Bangalore

The Leela Palace, Bangalore commenced operations in 2001 with 256 guest rooms and expanded to 357 guest rooms in FY08

The hotel is located in close proximity to the city centre and recreates the architectural style of the Mysore Palace in a modern art deco form

The Leela Palace Bangalore stands majestically amidst seven acres of lush gardens and a sparkling lagoon in the garden city of Bangalore

The Hotel is built on land of 6 acres leased from promoter Company and 0.9 acre of land and building leased by an Investor

No. of Rooms

Room Mix

184

20

80 44 28 1 357

0

125

250

375

500

DeluxeRooms

Conser-vatoryRooms

RoyalPremiereRooms

RoyalClub

Rooms

Suites MaharajaSuite

Total

Facilities and Dining

Facilities

Grand Ball Room of 4400 sq. ft.

12 Board Rooms and Meeting Rooms

Spa by ESPA

Dining

CITRUS - 24 hour brasserie offering Mediterranean cuisine, multi-

cuisine buffet

Jamavar – Fine dining signature Indian restaurant

Zen - offers pan Asia cuisine

Library Bar – International martinis and cigar lounge

13

The Leela Palace, Bangalore


11,594 11,521 11,673 11,109

69%

67% 67%

64%

50%

60%

70%

80%

0

4,000

8,000

12,000

16,000

FY11 FY12 FY13 FY14

ARR Occupancy

665 685 635 654

1,0451,000

1,015926

48%

42%43%

39%

20%

30%

40%

50%

0

500

1,000

1,500

2,000

FY11 FY12 FY 13 FY 14Room Revenue Other revenue Gross Op. Profit as % of Rev

INR Mn INR

14

16

56

4 2 1 1 80

10

35

60

85

Lake ViewRooms with

Balcony

HeritageLake ViewRooms with

Balcony

LuxurySuites

DuplexSuites

The RoyalSuite

TheMaharaja

Suite

Total

The Leela Palace, Udaipur

Operational since April 2009, The Leela Palace Udaipur offers a

spectacular view of Lake Pichola, the City Palace and the Aravalli

mountains

All 80 guestrooms and suites are on the waterfront of Lake Pichola

The hotel is built on 8.2 acres of land owned by the Company

No. of Rooms

Room Mix

Facilities

The Marwar ballroom of 2461 sq ft and Mewar ballroom of 1872 sq ft

and 4 Boardrooms / meeting rooms

Spa by ESPA

Gym with steam room and Sunrise and Sunset Yoga

Dining

The Dining Room – International cuisine

Sheesh Mahal – fine dining Indian cuisine

Library Bar

24 hour private dining

15

The Leela Palace, Udaipur


21,004

19,092 19,479

20,923

24%

30%

34%

39%

15%

20%

25%

30%

35%

40%

45%

12,000

14,000

16,000

18,000

20,000

22,000

24,000

FY11 FY12 FY13 FY14

ARR Occupancy

74 92115

137

148

167

193 242

5%4%

19%

34%

0%

8%

16%

24%

32%

40%

0

50

100

150

200

250

300

350

FY11 FY12 FY13 FY14

Room Revenue Other Revenue Gross Op. Profit as %N

INR Mn INR

16

The Leela Palace, New Delhi

Room Mix

No. of Rooms

Located in the exclusive Diplomatic Enclave with close

proximity to Rashtrapati Bhavan, the Secretariat, as well

as the central business district and historical monuments

Spread over 3 acres of land, owned by the Company

All suites and guestrooms are over 550 sq. ft.

119

81

3915 2 1 1 258

0

40

80

120

160

200

240

280

GrandeDeluxe

guestrooms

RoyalPremiereRooms

RoyalClub

Rooms

Suites GrandeSuite

with pool

Royal Suitewith Pool

Mahara jaSuite

Tota l

Facilities

Grand Ball Room of 4300 sq ft and Royal Ball Room of 1176 sq ft

8 Meeting rooms and Boardrooms

Spa by ESPA

Dining

The Qube – all day dining restaurant

Jamavar – Royal Indian cuisine

Megu - modern Japanese cuisine

Le-Cirque - French & Italian gourmet cuisine

The Library - Bar

15,843

14,81414,403

35%

51%

58%

20%

30%

40%

50%

60%

70%

80%

8,000

10,000

12,000

14,000

16,000

FY12 FY13 FY14ARR Occupancy

17

The Leela Palace, New Delhi


549736 787

521

710785

1%

25%

36%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

250

500

750

1,000

1,250

1,500

FY12 FY13 FY14Room Revenue Other Revenue Gross Op. Profit as % of Rev

INR Mn INR

18

The Leela Palace, Chennai

Room Mix

No. of Rooms

213

24

57

16 13 1 1 1 326

0

60

120

180

240

300

360

DeluxeRooms

PremiereRooms

RoyalClub

Rooms

Suites DeluxeApartment

LuxuryApartment

RoyalSuite

Mahara jaSuite

Tota l

The Leela Palace, Chennai, located in Adyar in Chennai,

overlooking the azure blue sea of the Bay of Bengal

The seafront hotel reflects the grandeur of the Chettinad Palace

architecture

Majority of the 326 guest-rooms and suites overlooking the Bay of

Bengal

The hotel is built on 4.8 acres of land owned by the Company

Facilities

Grand Ballroom of 15400 sq. ft. and Royal Ballroom of 8535 sq. ft. with

pre-function area

2 Meeting Rooms and 7 Board Rooms

Dining

Spectra - All day dining restaurant

Jamavar – Indian restaurant

China XO - Chinese restaurant with alfresco dining

Rooftop Italian restaurant (will start in the FY15)

Library Blue - Bar

19

The Leela Palace, Chennai


8,924

7,317 24%

33%

0%

10%

20%

30%

40%

50%

5,000

6,000

7,000

8,000

9,000

FY13 (79 Days) FY14

ARR Occupancy

INR Mn INR

100523

52

283

-45%

-3%

-60%

-50%

-40%

-30%

-20%

-10%

0%

10%

0

150

300

450

600

750

900

FY13 (79 days) FY14

Other Revenue Room Revenue Gross Op. Profit as %N

20

The Leela Ambience, Gurgaon/NCR

Operational since April 2009

The property is owned by the Ambience Group

Hotel Leelaventure operates the hotel through a management contract

29321 6 1 321

90 411

0

75

150

225

300

375

450

Guestrooms ExecutiveSuites

DeluxeSuites

PresidentialSuite

Total ServicedResidences

Grand Total

ARR and Occupancy

10,052

9,746 9476

9,586

86%83% 77% 75%

0%

20%

40%

60%

80%

100%

4,000

5,000

6,000

7,000

8,000

9,000

10,000

11,000

FY11 FY12 FY13 FY14

ARR Occupancy

No. of Rooms

Room Mix

Revenue Breakup

812 843 906 883

1,2921,218 1,101 1,077

52%

41%

37%40%

8%

18%

28%

38%

48%

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2,200

FY11 FY12 FY 13 FY 14Room Revenue Other Revenue Gross Op. Profit as % of Rev

INR Mn

INR

21

The Leela Raviz, Kovalam

This resort earlier owned by Hotel Leelaventure was sold in 2011

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

Occupancy during the tourist season from November to March

Room Mix

No. of Rooms

641

49

84

2 1 183

0

50

100

150

200

250

Beach View

Superior

Rooms

Club

Rooms

Garden

View

Rooms

Club Suites Presidential

Suites

Duplex

Suite

Total

Revenue Breakup

ARR and Occupancy

258 271 274 309

366

407 415417

41%

36% 32% 37%

20%

25%

30%

35%

40%

45%

50%

0

150

300

450

600

750

FY11 FY12 FY13 FY14


8,155 8,911 9,648 9,455

67%68%

64%66%

40%

50%

60%

70%

80%

4,500

6,000

7,500

9,000

10,500

FY11 FY12 FY13 FY14

ARR Occupancy

INR Mn

INR

22

Asset light Strategy for Future Growth

1. Agra – A Leela Palace Hotel with 100 guestrooms facing the Taj Mahal proposed to be built with a J.V. Partner, on 6.5 Acres of land owned by

the Company and to be managed by Leela. The total investment would be about ` 350 Crores including ` 100 Crores already invested for the

land by the Company.

2. Jaipur, Rajasthan – Management Contract signed for a 58 villa resort under development. The total investment would be about `.135 Crores

with a Leela Group company investing `.18 Crores towards 29% equity in the SPV.

3. Bengaluru, Karnataka – Agreement signed with the Bharatiya Group for managing a Leela Hotel, near the International Airport, with 250

guestrooms, and a Convention Centre for 1500 persons, MOU signed for the Leela Residences with 150 units. The property is under

construction and is part of 120 acres modern township.

MOUs / Management Contracts executed / under consideration

23

Next to the Leela Palace Hotel

Office space with saleable area of 271,674 sq ft

ready for fit outs

Agreement to Sale signed.

Sale transaction to conclude on receipt of

Completion certificate

Chennai

Bangalore

Surplus land of 8,027 sq mts next to Leela Palace

Company has signed a Joint Development

Agreement with M/s Prestige Developers for

developing high-end residences

Hyderabad

3.85 acres of land in a prime locality at Banjara Hills

Company shelved initial plans of building a luxury hotel after

significant new supply came up in the area

This is being sold

34,102 sq mts of land near the golf club on the main road to the

Airport, jointly owned by the Company and Leela Lace Holdings

Private Limited, one of the promoters

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

Construction work has commenced

Hyderabad

Deleveraging Through Monetization of Non-core Assets

Pune

Pune

ChennaiBangalore

24

INR Mn 2013-14 2012-13 2011-12 2010-11 2009-10

Income

Room Revenue 3,801 3,561 3,088 2,599 2,556

Food & Beverage Revenue 2,525 2,038 1,746 1,251 1,256

Other Operating Services 383 504 587 520 469

Income from Rental & related Services 172 187 172 157 145

Sale of Power 154 124 118 113 65

Income from Operations 7,034 6,414 5,711 4,640 4,491

Other Income 647 184 166 270 292

Total Income 7,682 6,598 5,877 4,910 4,783

Expenditure

Consumption of raw materials 619 510 430 306 306

Employee Cost 1,976 1,866 1,731 1,043 954

Fuel, Power and Light 665 651 506 385 439

Other Expenses 2,473 2,378 2,859 1,608 1,550

Total Expenditure 5,733 5,405 5,526 3,342 3,249

EBITDA 1,949 1,193 351 1,568 1,534

Depreciation 1,807 1,387 1,022 630 683

Interest 5,016 4,053 3,213 561 245

Exceptional Items / Income - 33 4,178 185 -

Profit Before Tax (4,873) (4,214) 294 563 606

Provision for Tax (459) 121 107 185 196

Net Profit (4,415) (4,335) 187 378 410

Profit and Loss Statement

1. Note 1. Profit from sale of Kovalam Hotel and operational profit till the date of sale.

(1)

25

Shareholding

0

5

10

15

20

25

30

0

5

10

15

20

25

30

Apr/13 May/13 Jul/13 Aug/13 Oct/13 Nov/13 Jan/14 Feb/14

Volume Hotel Leelaventure

As on March 31, 2014

Shareholding Pattern

Source: Bombay Stock Exchange

Share Price Performance Summary for FY 2013-14

Source: National Stock Exchange

Share Price Performance – Last 1 year

INRVolume in 100 Thousand

Share Price

(INR)As on

As on 31st March 2014 15.85

52 week high 22.00 9 May 13

52 week low 14.00 21 Nov 13

Market Capitalization (INR Mn) 7,158

Market Capitalization (USD Mn) 119.3

Promoters

62.7%

Mutual Funds/ Other

Financial Institutions 5.5%

Bodies Corporate

14.4%

Foreign Institutional

Investors 0.8%

Individuals and Others

16.6%

Note:

1. 1 US$= INR 60

2. Market Capitalization as on 31st March,,2014

26

Thank You

Statements made in this Presentation describing the Company’s objectives, projections, estimates, predictions and expectations maybe ‘forward-looking statements’, within the meaning of applicable securities laws and regulations. As ‘forward-looking statements’ arebased on certain assumptions and expectations of future events over which the Company exercises no control, the Company cannotguarantee their accuracy nor can it warrant that the same will be realized by the Company. The Company assumes no responsibilityto publicly amend, modify or revise any forward looking statements on the basis of any subsequent developments or events or forany loss any investor may incur by investing in the shares of the Company based on the ‘forward-looking statements’.

Disclaimer :

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