Company

The Byke Hospitality Ltd.

Industry
Hotels
CMP
156.6
MCAP
627.93 cr
FV
10
MDA ranking (1-5)
4
Growth Outlook ranking(1-5)
3.5

Particulars
Net Sales
Growth %
EBITDA
PAT
EPS
Eq. Share Cap
Reserves
Book Value
Total Debt
Gross Block
Cash
Capital Employed
CFO
EBITDA %
PAT %
ROE %
ROCE %
P/E
Debt / Equity (x)
Net Sales/ Gross Block (x)
No. of Rooms

FY11
332.40
#VALUE!
41.20
21.50
1.71
125.50
435.30
34.69
1.80
164.70
10.30
437.10
3.80
12%
6%
5%
5%
91.41
0.00
2.02

FY12
490.60
48%
52.21
24.00
1.26
190.50
470.00
24.67
173.40
511.10
20.00
643.40
27.70
11%
5%
5%
4%
124.30
0.26
0.96

FY13
1009.40
106%
181.20
77.60
3.87
200.50
524.10
26.14
198.70
812.30
10.50
722.80
156.80
18%
8%
15%
11%
40.46
0.27
1.24

FY14
1557.10
54%
287.40
158.90
7.93
200.50
647.80
32.31
145.50
923.60
19.80
793.30
199.90
18%
10%
25%
20%
19.76
0.17
1.69

182
2,802

425
1,771
-37%

465
3,330
88%

465
5,138
54%

Industry:
The Government has allocated ` 1,573 crores to the Tourism Ministry for 2015-16
The visa-on-arrival enabled electronic travel authorisation for 43 countries further invite
The domestic tourist spending is projected to touch 85% by 2024 on the back of

About the Company:

The Byke Hospitality Ltd is a fast emerging name in the hospitality sector with luxury re
The business can be broadly classified into two segments: Owned & Leased (O&L) a
Currently the group has a bouquet of 8 luxurious properties:-

1 The
2 The
3 The
4 The
5 The
6 The
7 The
8 The
New. 9 The

Byke
Byke
Byke
Byke
Byke
Byke
Byke
Byke
Byke

Old Anchor
Hidden Paradsise
Sunflower
Heritage
Redwood
Paawana
Grassfield
Neelkanth
Suraj Plaza

South Goa
North Goa
North Goa
Matheran
Matheran
Mandawa Rajasthan
Jaipur
Manali
Thane

Lavish resort with 240 guest roo

Boutique resort with 40 guest ro
22 rooms, 1 restaurant
Boutique resort with 80 guest ro
25 rooms, 1 restaurant.
Spread over 3000 sq Mts area w
54 rooms, 3 restaurants, 3 lawn
Boutique hotel of 40 rooms, 1 re
122 rooms, 3 restaurants, 3 con

We operate eight hotel properties in Maharashtra, Rajasthan, Goa and Himacha

We follow a unique asset-light business model, which allows us to leverage high p
As on March 2015, we have 519 rooms under management, of which 102 are ow
As the resorts are taken on lease, we utilise the resources for modernisation and r

Room Chartering Model

We started our room chartering business in 2010-11. Under this model, we buy ro
Strong network of around 208 active agents present across 47 cities
While there is no capital cost involved, the profits earned directly boost the bottom-line
In 2015, the Company sold 373,250 room nights, compared to 345,000 in 2014 ac

Key Takeaways:
During the year, we added a property in Jaipur called Byke Grassfield, which has
The Jaipur hotel has become a popular wedding destination in the city.
We also added Byke Suraj Plaza, Thane to our O&L portfolio in May, 2015. The p
The Thane hotel with 122 rooms is right across Suraj Water Park, a theme wate
We plan to expand our O&L, as well as RC portfolio in the next three years.
We are planning to add three new properties at Thane, Shimla and Puri to our O
They will be operational by the end of 2015-16. With this addition, the bouquet of
In the next leg of our growth, the Company aims to increase its presence in 8 holid
We are developing an online portal, tripdeal.com to provide a fillip to room chartering
We are planning to extend our presence across eight popular tourist destinations, i

The average occupancy in O&L business has been competently increasing from 6
Although it declined to 67% in 2015, primarily due to the launch of the new Byke
The ARR saw an increase of ~8-10% in all the hotels, leading to an overall ARR o

In the RC business, the ARR increased from ` 2,175 in 2014 to ` 2,404 in 2015, r
The occupancy increased from 92% in 2014 to 94% in 2015.
The room chartering business faces geographic threats arising out of seasonal
However, due to pan- India presence, individual risks get mitigated.

( Rs Mn)
FY15
H1FY16
1814.20
935.50
17%
39%
373.70
199.60
200.30
95.50
9.99
2.38
200.50
401.00
599.60
695.00
29.91
17.33
124.10
98.00
1031.90
22.80
9.90
723.70
793.00
164.40
21%
21%
11%
10%
33%
14%
28%
12%
15.68
65.76
0.16
0.09
1.76
#DIV/0!
519
5,363
4%

697
4,118
-23%

CAGR
53%
74%
75%

Porters 5 forces
Buyers Power Suppliers Power Threat of new Entrant Threat of Substitute Industry Rivalry -

-4%

Online Model status

Breakup of operating performance of each o
Lot of plans made but delay in execution. Wh
Chartering business - need to understand ho
Why buying land and building own property
Capex plan - do they plan to raise money for
What is the arrangement for the lease mode
How much time does its take for a property t
What is the operating margin of Byke Heritag
Hotel wise margin breakup

Chartering 0.4406417112
Owned
0.5593582888

nistry for 2015-16, compared to ` 1,183 crores for the previous fiscal.
untries further invited more tourists.
2024 on the back of Indias emerging middle class and rising discretionary spend.

ector with luxury resorts boutique hotels under its banner.

& Leased (O&L) and Room Chartering (RC).

t with 240 guest rooms spread across 19 acres of land. 2 restaurants, 2 lawns/banquets, 3 conference halls.
sort with 40 guest rooms. 1 restaurant
restaurant
sort with 80 guest rooms. 2 restaurants, 2 conference halls
restaurant.
3000 sq Mts area with 18 well equipped old traditional rooms.
restaurants, 3 lawns/banquets, 3 conference halls
tel of 40 rooms, 1 restaurant.
3 restaurants, 3 conference halls. (Operational from first half of 2016)

Goa and Himachal Pradesh of which two are owned and the rest six are on a long-term lease.
to leverage high profitability from a low capital base
which 102 are owned.
odernisation and renovation of acquired properties, which in turn helps increase occupancies and ARR

s model, we buy room nights of mid-budget hotels in bulk across leisure tourist and religious dest

ost the bottom-line

45,000 in 2014 across almost 50 cities in India.

assfield, which has 54 rooms, three restaurants, three lawns/ banquets and three conference room
the city.
n May, 2015. The property is likely to be operational in the first half of 2016.
ark, a theme water park.
three years.
and Puri to our O&L portfolio.
on, the bouquet of rooms will be 697 from 519.
presence in 8 holiday destinations
p to room chartering.
ist destinations, including Lonavala, Mahabaleshwar, Chandigarh,Dalhousie,Jodhpur, Udaipur, Da

increasing from 61% in 2012 to 70% in 2014.

h of the new Byke Grassfield at Jaipur.
o an overall ARR of ` 3,769 in 2015, a rise of 4% over the previous years ARR of ` 3,617.
` 2,404 in 2015, registering a growth of 10%.

ng out of seasonal lack of demand or natural calamities.

9595.388
1440.50
7618.871

ating performance of each of the segment

e but delay in execution. What abt sunhine Goa?
ess - need to understand how does this work?
and building own property - when lease busines is working well
they plan to raise money for expansion
ngement for the lease model - share of revenue/profit to the owner?
does its take for a property to achieve breakeven?
ating margin of Byke Heritage Matheran ? Is this the highest?
n breakup

y spend.

nquets, 3 conference halls.

n a long-term lease.

crease occupancies and ARRs.

tourist and religious destinations during off-peak seasons. In the peak seasons we sell those roo

nd three conference rooms.

usie,Jodhpur, Udaipur, Darjeeling and Gangtok by 2016-17.

ARR of ` 3,617.

s we sell those room nights.

Annual Report 2009

Earlier Name : Suave Hotels Limited
Dec Jan is the peak season for all the hotels of the company
Worst year due to slowdown and terrorist Attack
US$11bn is planned to be spend over the next 2 years and there is a total shortage of 1,50,000 rooms

Annual Report 2010

Hotel Industry is expected to grew at 8.8% over the next five years
Travel and Tourism accounts for 6.4% of total employment in India and it is estimated to grow to 10%
7.5mn shares were issued as convertible warrants for expansion plan and company is looking at new o
The warrants were issued for Rs44/share for 18 month period. Total money raised was Rs33cr
Sep 2009 - acquired 38700 sq meters at Dist. Sindhudurga, Maha for the purpose of developing medic
Market size of medical tourism is US$2.4bn and it is growing at 27% annually. Total 1.1mn tourist visit

Annual Report 2011

New management was inducted during the year. Mr. Sharma (chairman) was replaced with Mr. Patodia
M/s Hotels Relax Private Ltd in concert with Mr. Anil Patodia, Mr Kamal Poddar and Mrs Vinita Patodia t
Travel and Tourism accounts for 8.4% of total employment in India
Decided to expand and open new hotel under the brand name The Byke
Mr. Sharma - Made the MD of the company

The Indian Travel and Tourism Industry estimated at Rs. 1,970 billion in F.Y. 2010 contributed 6% to the
Rs. 6,211 billion by 2020, growing at a CAGR of 12% per annum. The Travel and Tourism Industry is th
generation and accounts for about 8.4% of the total employment. The hotel industry in India is looking
which will create 60,000 rooms and 2,000 new jobs. The statistic say that the hotel industry is looking
in India over the next five years creating over 80,000 jobs
The company ventured into Hotel and Tourism industry in the year 2002.

Under the new leadership focus is to have presence in all the segment of Travel and Tourism. The com
Sunshine Beach Resort Goa - Baga Beach
Sunflower Beach Resort Goa - Baga Beach
The Byke - Pride of Matheran
Hotel Paawana - Mandawa Rajasthan - Jhunjhnus
Road Ahead - Properties identified in Goa, Maharastra, Gujarat and Rajasthan - aspiration is to go pan
Focus more on Goa
Maha - Mahableshwar, Lavasa, Alibaug and Lonavala
Gujarat - Vadodara and Daman
Rajasthan - Jaipur and Jodhpur
Online Travel Portal - Online services through a separate website

Preferential allotment of share 6.5mn (on conversion of warrants) which results in an increase in capit

During the year company took the contract for managing - The Byke - Hotel Retreat Matheran
The name changed to Byke Hospitality Limited

The company started room charting business in FY11. Wherein it buys in bulk the complete inventory
and sells them during the peak-season. Last 2 years its has sold 90% of the room nights purchased at

Annual Report 2012

The company during the year has entered into several contracts which includes:
The Byke - Old Anchor, Goa, The Byke - Redwood, Matheran - added during the year
The Byke - Neelkanth, Manali and The Byke, Shimla will commence their operation in 2012-13
The company is looking for franchise/management contracts in various other parts of the country - Th

Currently, the company owns and operates hotel in seven locations:

The Byke-Heritage and The Byke- Redwood, Matheran, The Byke- Old Anchor, Hotel Sunflower, Hotel S
Remaining 1mn share were also converted into equity shares
The Byke-Heritage
The Byke- Redwood, Matheran - 25 room
The Byke- Old Anchor,
Hotel Sunflower
Hotel Sunshine,
Hotel Goan, Goa and
The Byke- Paawana, Shekhawati - 18 rooms
The Byke - Neelkanth, Manali - 50 rooms
The Byke, Shimla
In the coming years
The Byke - Aronda Goa,
Khopoli - Maharastra - 75 rooms
Kudal - Maharastra - 60 rooms
Jodhpur - Rajasthan - 60 rooms
Lavasa - Maha - 75 rooms

Annual Report 2013

Achieved a turn over of Rs100cr during the year
Niche in the Pure Veg segment
The current capacity of the company with respect to rooms stand at 465 rooms. Over the next 2 years
Two new properties as a part of lease contract. The companys steps to start its new operations with
The Byke Hidden Paradise Goa ,with 40 guest rooms in first year of operation, have been very suc
The Byke-Heritage - Matheran

The
The
The
The
The
The

Byke- Redwood, Matheran - 25 room

Byke- Old Anchor, Goa - 240 rooms
Byke Hidden Paradise, Goa
Byke - Sunflower, Goa
Byke - Neelkanth, Manali
Byke- Paawana, Shekhawati - 18 rooms

Looking at managing state owned properties under Joint brand name.

The company expects to start its operations of the Hotels under the brand The Byke at Shimla (Him
Goa, Kollam Kerala, Hampi Karnataka and Jodhpur Rajasthan
Foraying into the room charter business which has a higher margin profile and is looking at launching
Renovation The Byke - Old Anchor, Goa - Pool side Bar and a discotheque
Number of rooms increased from 152 to 240
MICE - Meeting, Incentive, Conf and Exhibition is also the focus are of The Byke

The company which does charter bookings is also looking at taking comission from the third party hot

AnnualReport 2014

The Company has a plan to increase its presence gradually to 17 locations over the next two
Accordingly, it has already acquired land at three locations:
3.75 acres land near proposed Navi Mumbai airport for Business class Hotel.
10 acres land at Aronda on the banks of Sindhudurg river in Maharashtra for a premium sp
2 acres land near Ashtamudi lake at Kollam, Kerala for premium beach view resort

Currently, Byke operates hotels at popular holiday destinations with average occupancy level of ar
This business has grown by 4.8 times in just three years and the company reported a revenue o
The Company has one of the widest sales and marketing network, reaching out to the target aud
We have a unique third party marketing tie-up through which we are present at 8000 location
The management of the company is actively discussing with various state tourism depts for operatio

ortage of 1,50,000 rooms in 2010 of which 100,000 will be in buget categories

timated to grow to 10% by 2014

mpany is looking at new or existing properties in Maha-Goa region
ised was Rs33cr
pose of developing medical tourism in India
Total 1.1mn tourist visited in India for medical purpose a growth of 17%

replaced with Mr. Patodia (new one)

and Mrs Vinita Patodia took over the company followed by an open offer to Suave Hotel Limited

10 contributed 6% to the overall GDP and is expected to reach

nd Tourism Industry is the largest contributor to employment
ndustry in India is looking at investing USD 10.3 billion by 2015,
hotel industry is looking over USD 10 billion worth of investment

vel and Tourism. The company currently has four hotel in 3 location - Goa, Matheran and Mandawa.

- aspiration is to go pan India. Looking at acquisition of existing properties

ts in an increase in capital from Rs12.55cr to Rs19.05cr

etreat Matheran

the complete inventory of room which are across religious & leisure tourist destinations during the off-peak sea
oom nights purchased at a gross margin of 14%

ration in 2012-13
parts of the country - The Byke - Aronda Goa, Khopoli - Maharastra, Kudal - Maharastra, Jodhpur - Rajasthan, Lav

Hotel Sunflower, Hotel Sunshine, Hotel Goan, Goa and The Byke- Paawana, Shekhawati.

ms. Over the next 2 years target is to double this capacity

ts new operations with The Byke - Neelkanth, Manali with 40 guest rooms and
tion, have been very successful and achieved high occupancy ratio.

he Byke at Shimla (Himachal Pradesh), Navi Mumbai & Mahablashewa

d is looking at launching a unique customized web portal to drive new business

from the third party hotel operators for room bookings

ons over the next two years.

shtra for a premium spa rejuvenation center cum resort.

ch view resort

e occupancy level of around 69%

ny reported a revenue of `807 mn in FY14 from these 8 hotels comprising 539 rooms.
ing out to the target audience through its 27 owned sales offices and 350 registered Travel Agents
esent at 8000 locations.
urism depts for operational management of its 150 prime properties hereby enhancing its capacity by

d Mandawa.

Room Charting servcies

s during the off-peak season

, Jodhpur - Rajasthan, Lavasa - Maha in cmg years

ed Travel Agents

hancing its capacity by additional 6,000 rooms.

Call Details (21st January, 2016)

The business can be broadly classified into two segments: Owned & Leased (O&L) a
Revenue share is 50:50
Total revenue Rs180 cr
Lease amount < 12% of potential revenue
Ideally maintained between 8-10%

Thane property started operations from Q2FY2016

Simla and Puri will be operational from Q1FY2017
8 new properties under scanner. Each property involves a Capex of approx Rs.

Owned & Leased Model

Lease is usually taken for a period of 15-20 years with a 3 year lock-in period
Lease amount is paid on a monthly basis.
No revenue sharing with the lessor.
The Byke Old Anchor, South Goa (240 guest rooms)
40-45% of entire revenue from this property.
Average room rent Rs.3500-4000
Lease amount : Rs3.5cr/annum. Revised by 15% every 3 years.
Byke spent Rs.12-15cr for refurbishing on acquistion

Byke has acquired land at three locations:

3.75 acres land near proposed Navi Mumbai airport for Business class Hotel.
10 acres land at Aronda on the banks of Sindhudurg river in Maharashtra for a
2 acres land near Ashtamudi lake at Kollam, Kerala for premium beach view re
All development plans for the above mentioned properties have been scrapped for the t
Amount invested Rs7 - 10 crores

Revenue is split in the ratio of 1:1 between Hotel and F&B services
The Hotel Business has an EBITDA margin of approx 25%
F&B has a higher margin compared to Hotle rooms.
Hence, Thane and Jaipur hotels contribute to higher margins compared to others

Room Chartering Model

Buy room nights of mid-budget hotels in bulk across leisure tourist and religious d
In the peak seasons, sell those room nights.
All payments are made to the hotels in advance.
Chartering done via travel agents only. 250 such activce agents
ARR of chartering business is Rs2000 - 2500.
Tie up with mainly small/single owner hotels who donot have an online platform for book
Regular tie up with approx 50 hotels.
Strategic move inorder to survey the markets in those tourist destinations.

Rooms are acquired at 30% discounted price. This is the GP margin for Byke.
10% is the Agents commission
5% Inventory Loss
This is a high ROC model

Stock Holdings
Jupiter Holdings (FII) bought 20 lakh shares
QIC holds 4-5% stake
United India Assurance holds 5% stake

ed & Leased (O&L) and Room Chartering (RC).

Capex of approx Rs.4 - 5 crores.

lock-in period

iness class Hotel.

n Maharashtra for a premium spa rejuvenation center cum resort.
mium beach view resort
een scrapped for the time being.

s compared to others.

tourist and religious destinations during off-peak seasons(3-4 months in Advance).

nline platform for booking.

rgin for Byke.